[mykekal]

Hi John,

Thank you for the response. Yes, I watched the video. From a practical perspective, if I am faced with the scenario I outlined, how should I go about this?

[mykekal]

I was not sure what to think of the Operating Profit – It could have meant Profit After Tax based on how the calculations were completed. Therefore, I was also thinking that the junior accountant wrote operating profit instead of profit after tax. Thus, I recalculated NOPAT using this assumption – that is, operating profit should be profit after tax. What do you think?

[mykekal]

Thank you. All the best on your P5 exam as well. Good luck!

[mykekal]

Thank you for clarifying. I still don’t think the question was clear regarding the ratio of debt to equity.

[mykekal]

Hi Allymaudar,

Thanks again for help earlier.

In the June 2014 Question 1, I now understand the calculation of the EVA. However, I am unsure why the examiner uses 1/1.3 and 0.3/1.3 in the WACC calculation. The question says Debt/Equity is 30%.

I am looking forward to your assistance.

[mykekal]

Hi Sarsal72/Allymaudar,

Thank you so much. It is greatly appreciated.

[mykekal]

Thank you szparag.

[mykekal]

Good luck to both of us too! Its my last paper as well. It has been a nightmare and a struggle for the last 3 sittings with this paper. I hope the examiner will be satisfied with my script this time.

[mykekal]

Thank you Temesgen. Now I understand the difference; It helps a lot.

[mykekal]

Are you saying I should use the same approach for both questions?

[mykekal]

I have read this technical article before. But I need to be more clear on your reply. If the question asks for (i) an evaluation of the performance management report (ii) an evaluation of the performance management/measurement system – should we use the suggested approach in this technical article? That is – Purpose, Audience, Information and Layout.

[mykekal]

To: wazir123 – Excellent information. This is my first time doing this subject and I find this link very very useful. I thank you so much. I am now in a better position to put things into the P3 perspective. Again, thanks.

[mykekal]

Based on the comments here, I think what most students failed to do was to review the UK format for June 2010 and December 2010 to see what the new style for P7 INT was going to be. It was mentioned in an article that the UK format had already adopted to the new quesion style since June 2010. This is what actually gave me an idea of what to expect; additionally, P6 – Advanced Tax has been using this question style for a some time now….These are what helped with the new approach in P7 (well, finding the requirement in P6 is even WORST and leading to a DISASTER).

Overall, it was not a bad paper; just, time pressured as usual as with all the papers. I believe the paper was more a practical approach. Thus, persons lacking the external audit experience may find it a bit challenging, as I did for some areas.

[mykekal]

@ursweety77 said:
tooo lenghtyy

It’s ALWAYS an unfair paper. Did it twice and dropped it. Dont believe its ever well written for students to be able to understand the requirements fully. The examiner needs to simply the requirements as it does not do any justice to sutdents who study hard to make a fair attempt at this paper.

[mykekal]

Thank u.

[mykekal]

Thank you. Good stuff. Very helpful.

[mykekal]

@rosica said:
Yes I did that question and I did the calculation for the capital gain on the incorporation using Incorporation relief and ER and calculation the value of the shares as a part consideration for the sale of the business.

Thanks for the feedback. This was an easy 8 mark part of the question, but I just could not arrive at the cost. I know I would use Entre relief and incorporation relief, but I just could not go on without this vital information.

I still do not understand how you calculate it. I guess I will see how it is done when the answer is published.

[mykekal]

@pjacres said:
Any thoughts on the 12 part IHT computation anyone? What was the point of that?
Also does anyone know what the specific requirements for senior accounting staff per FA 2009 were? Not covered in my notes as far as I can see. Everyone I asked couldn’t answer the question that was asked and wrote some general thoughts on errors instead.

My thoughts exactly. However, I calculated the IHT for the two estimated time of death using all three assumed values of the gift, with one giving rise to BPR and taper reliefs. I dont know how the examiner got 12, I ended up with 6 plus the lifetime gift.

[mykekal]

@sashwa said:
should we calculate CA for the 1st question on office furniture and office computer and equipment?

I think we should.

[mykekal]

Hi, did anyone attempt the section 2 question that speaks about sale of 20% shares by Vine to her store manager for $64,000.00. If yes, how did you arrive at the base cost of the shares?

[mykekal]

My main problem with this P6 exam is that too often I am unable to understand exactly what the examiner is asking for. I believe that most students who do this paper do not lack the required knowledge and skill, but we are just not able to apply those skills as there is a lack of clarity in the requirements.

I do not know about you all, but I find them difficult to decipher in most cases.

What are your thoughts?

[mykekal]

I allocated the capital allowance to the subsidiary with the highest tax rate first then the balance to next tax rate, i.e. 29.75% then 21%.

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