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The question may be wrong. Bpp’s errors make me very confused as I don’t know IAS very well. Thank you, sir
This question is very confusing. I can’t distinguish what is right or what is wrong. When I sit ACCA specimen exam, the correct answer is A. Which answer should I gave for a question like this, Sir?
This question is really driving me crazy! The following paragraph is from the CreditManagementWorld.com.
Revocable vs. Irrevocable Letters of Credit
A Letter of Credit may be revocable or irrevocable. In a
revocable Letter of Credit, the issuing bank (representing the
buyer) has the right to cancel or alter its obligation at any time
before payment of a sight draft or acceptance of a time draft.
That situation exists even if goods were shipped in reliance on
the expectation of payment.It says the issuing bank (representing the buyer) but ACCA specimen exam says it is wrong. Help me!
According to the document from the link you has provided to me, I think the issuing bank is the buyer’s bank and the answer for the above question should be C. Help me, Sir!
Then, the correct answer should be A, right?
I think BPP made a mistake.The following sentence is what they explained.
Appeals from a Magistrate’s Court are heard by the High Court(Queen’s Bench Division)
Her adjusted net income clearly exceed 118880. PA is Nil
118880-100000=18880/2=9440
If there is no frank investment income, total taxable profit is augmented profit.
You should look the augmented profit to determined the tax rate not total taxable profit. Be carefual if there is associated companies. If the company has x number of associated company, the upper limit and lower limit should be divided by x+1.
This means
One associated Co, then
Upper limit 1500000.÷2=750000
Lower limit 300000÷2=150000If Two associated, then
U =1500000÷3=500000
L =300000÷3=100000Deemed disposal proceed…………189000
Less indexed cost…………………….138400Gain…………………………………………..50600
Less rollover relife…balancing……34000Immediately chargable gain……….16600
(189000-172400)You should calculate both methods in the exam but always select strict method. If avg method gives higher amount the taxpayer will choose the strict method. If avg method gives smaller amount hmrc will choose the strict method.
If there is no repaidment, you only need to calculate the strict method.(avg method is not required )10600 is related to 2012-13. Loan intrest received 32100 includes intrest of 10600. which relates to 2012-13. Therefore what we received for 2013-14 is 21500 (32100-10600).
Intrest related to 2013-14 is 32800 (21500+11300)If the taxable income is 60000 and taxable gain is 12000 not qualified for e relief and 22010 qualified for e relief.
If the taxpayer made gross personal pension contribution of 50000.CGT
22010@10% = 2201
12000@28% = 3360Gain qualified for e relief will always utilized the basic rate band first.
If the tax payer is a higher rate tax payer, he will be paying CGT @ 28%.
CGT
12000@ 28% = 3360If the gain is qualified for e relief, CGT will be 1200 (12000@10%)
If the taxpayer made gross personal contribution of 50000, the his basic rate band will be 82010 (32010+50000). Taxable income of 60000 will utilized 60000 of basic rate band. The remaing basic rate band is 22010.
CGT will be as follows
12000@18% = 2160. (Because 12000 is within the basic rate band.
If the gain is qualified for e relief, CGT will be 1200 (12000@10%)
CGT for e relief is 10%(the only limit for this is lifetime limit 10 million)
for basic rate tax payer CGT is 18% until 32010 and thereafter at 28%.For example your taxable income is 20000 after personal allowance and CG is 25000 after annual exemption
CGT
32010-20000=12010 at 18%
And 25000-12010=12990 at 28%
If you have gain qualifying for e relief, it should first use the basic rate band.
