[maro999]

Thanks Vee, that’s also how I treated it. I think there were also some receipts having being made before and during the year in that one, right? And I used the cash basis for that one.
Agreed about inheritance tax. I answered the same way.
Indeed strange that no rollover or goft relief were tested. Capital gains questions seemed so uncomplicated that I was getting worried I was overlooking something.
Section A was nasty. They included a lot of questions where you had to select 2 or 3 or 4 of several options and with those ones if you get one out of the 4 say answers wrong then the whole 2 marks is lost.
Excel was absolutely horrible to work on. It was getting stuck all the time, I had to double click on the cell at the start of each new question before I could type. I would try to link cells by taking a value of another cell and instead it was replacing whatever calculation was included in the cell I was trying to get the value from…and the list of issues continues. Seriously, they need to provide a proper version of Excel for the exams. No accountant has to work in a half functioning version of Excel like that.

[maro999]

I really can’t remember right now. I was in such a rush because there was a LOT to do in section C so I am now thinking back and start wondering whether I should have used the accruals basis for that one. I hate post-exam stress!

[maro999]

I got a question in section C which was referring to a scenarion called Chandra or something like that, can’t remember the exact name. It required some property income calculation with some mortgage interest and repayment and some other things under property income. Anyone remembers what it related to? Was it corporate tax computation?
I got an awful lot of questions in section C. Too many for each 10-mark or 15-mark question.

[maro999]

Dear Mike,

I hope you can help me with the same question. Here is the scenario:

Advent is a publicly listed company. Details of Advent’s non-current assets at 1 October 2008 were:

Land and buildings
Cost/valuation: $280
Accum.depn: $40
Carrying amount: $240

Plant
Cost/valuation: $150
Acc. Depn: $105
Carrying amount: $45

Telecom. Licence
Cost/valuation: $300
Accum. Amortisation: $30
Carrying amount: $270

The following information is relevant:
1) the land and building were revalued on 1 October 20X3 with $80 million attributable to the land and $200 to the building. At that date the estimated remaining life of the building was 25 years. A further revaluation was not needed until 1 October 20X8 when the land and building were valued at $85 million and $180 million respectively. The remaining estimated life of the building at this date was 20 years.

2) plant is depreciated at 20% per annum on cost with time apportionment where appropriate. On 1 April 20X9 new plant costing $45 million was acquired. In addition, this plant cost $5 million to install and commission. No plant is more than 4 years old.

3) the telecommunications licence was bought from the government on 1 October 20X7 and has a 10 year life. It is amortised on a straight line basis. In September 20X9, a review of the sales of the products related to the licence showed them to be very disappointing. As a result of this review the estimated recoverable amount of the licence at 30 September 20X9 was estimated only at $100 million.

There were no disposals of non-current assets during the year to 30 September 20X9.

The question seemingly relates to point 3 of the scenario:
“Advent’s licence is now carried at its recoverable amount. How would the recoverable amount be treated?”

A. Deducted from finance costs
B. Deducted from the cost of the asset
C. Recognised as investment income
D. Deducted from administrative expenses

All 4 options seem wrong to me but apparently the answer says the correct answer is A without providing any explanation as to why.

Could you please let me know your thoughts.

Thanks so much in advance.

Kind regards,
Maro

[Author]

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