[richardscully]

Wow, well done!! Good mark

[richardscully]

Pass 1st Attempt. Thanks Kaplan & Open Tuition SBR UK

[richardscully]

i thought under IFRS it could be a subsidiary as there was 50% board representation which could veto everything, furthermore the four were from one shareholder while the 55% was split amongst 5 shareholders. Under FRS 102 it could not be a subsidiary
Under IFRS Crypto could be seen to have control

[richardscully]

Thanks

[richardscully]

Thank you

[richardscully]

It is in the latest BPP revision kit and it is a preparation question. Number 2 (leases). the answer show excluding interest amount and no item for interest separately

i use the prep questions for my standards revision

[richardscully]

Thank you

[richardscully]

51

[richardscully]

Thank you…I think this time I may have passed..Changed the way I studied and it helped

[richardscully]

I got 717.25 after deducting 400

[richardscully]

cash offer was best for everyone i thought

[richardscully]

I made a stupid mistake by adding the PV of the unsubsidised loan to the costs and therefore got an answer of (15.8) when it was positive 5. i hope i get marks

[richardscully]

I did it differently. The cost of capital was 11% or whatever the figure they gave for Tai. they didn’t give an interest rate, so i did the FCF and used the 11% so did not deduct interest because that is in the cost of capital (not Ke) and then deducted the 400m debt and came to 717.25 as my value of Tai

[richardscully]

I made a mistake on my APV final amount but i know i got most calcs rights so i did something like adding up wrong. I hope i get marks

[richardscully]

I got 2.72

[richardscully]

Yes, 15.98 negative APV…15.30 negative base NPV

[richardscully]

Oh right…they are buying it from someone else?

[richardscully]

of course, i took the 29m equity and took 12% of that as debt…it was quite close but not perfect

[richardscully]

what they have done it seems is deduct the .16 from the .61 and got .45, whereas if you take .61 x .6 you get .366 and adding .16 gets .526…I don’t understand how that works quite honestly but it does

[richardscully]

I did that and it doesn’t match the answer book. that is my calculation. Mine comes to .526 and BPP come to .45

[richardscully]

No, but you would make a capital payment upfront which this one is. But rereading the question i see you are right

[richardscully]

Right, but if like in q3 Arthuron where they want dividend capacity which is FCF to equity then of course the tax on interest must be taken into account??

[richardscully]

of course, you are right. So when calculating a NPV and they give you a tax figure do not use it???

[richardscully]

Ok, we never bring in tax on the interest…..I thought tax was tax, you pay what the taxman tells you to???? If the P or L says you paid 22.7 tax then that is it????

[richardscully]

Thanks

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