[mefinyapascal27]

I thought I’ll fail because of stupid mistake I’ve made in question 1. I did not proportion revenue and other expenses ( 9/12) but surprisingly I passed with 63% and this was the first attempt. I’ve passed P3 and after this tough paper I think to door is opened to me to get qualified

[mefinyapascal27]

Loss of 8 on disposal and a gain on parent individual account should be removed before consolidation

[mefinyapascal27]

Hedge is a derivative financial instruments. It derives its value from underlying assets. example lets say we want ro buy a car for $50000 in 3 months time but we are worried that the price may increase. We can fix the price by entering into a contract with the bank to pay for the car at the price of 51000 if after three months the price has rised to $53000 we madea gain of $2000 but if instead the price go down to 49500 we will loss 500 on the transaction.
the price of the forward contract is linked tl tje price of the car.

[mefinyapascal27]

Note that I did not discount the 2907500 over 25 years to determine the present value of that money at the beginning of your retirement because it also requires a discount rate that was not given in your question

[mefinyapascal27]

This question is unclear. My understanding is that you’ll be saving $50000 per year up to 25 year after you retire to earn a return on investment of 6 percent per annum. Firstly you should determine how much you want to have in your account after 40 years. Which is 50000*((1.06^26-1.06)/0.06) which is $2907500 then use an appropriate discount rate to determine how much to save each year up to 40 years (annuity). For instance let say your discount is 8 percent then the annual savings will be 2907500/11.925 which is 243815 per annum. Annuity of 8 percent is 12.925. As you can see the amount you’re looking for depends on the discount rate. I bet you know that that rate is determine by the market (bank)
Hope you enjoy this answer

[mefinyapascal27]

in the Republic of Ireland the total income tax is gross income less pension and charges such as Covenant. If the covenant is restricted the maximum limit will be 5% of total income before deducting the covenant. The pension will be deducted from gross income before we get the figure of total income to compute the maximum limit for covenant. The maximum pension allowabe for individual every year is a certain percentage of his/her Net Relevant Income. The net relevant income is earned income less charges such as covenant. Therefore pension computation is a function of covenant and covenant computation is a function of pension.
The question is how to determine the maximum covenant allowable per year for indivual that makes pension contribution
to illustrate my question we have this: Gross income xx
less pension ( xx)
Total income xx
maximum covenant allowed 5% Total income xx

Now Earned income (Trade, or employment) xx
Charges: covenant xx
Less investment income (xx) (xx)
Net Relevant income xx
Maximum pension allowable 30% Net Relevant income
As you can see to know the the maximum pension contribution allowable covenant is used in the formula and to know the maximum covenant allowable Pension is used in the formula
What can do if such situation arises

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