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Can anyone submit all question breakdowns on what came up on the exam. and summarise answers maybe briefly like question one was……

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Q3 a) what was the base cost of the building? I used the new value as at 1st oct (date of transfer to the new company) because the old value would only have been used if the company was still with its old parent. As the company had bought the building of its parent it would have had to pay a degrouping charge as it left within 6 yrs so then you couldn’t possibly use the old base cost as cost? .

However Alley (Parent) sold to Begel (acquired an asset) on 1.5.2010 and Alley left the group rather than Begel.
1 Oct 16 or market value of warehouse base cost for begel plus indexation allowance from May 2010 to Oct 2016 – this is the base cost for future disposal
Nov 16 (date of transfer to the new company) -Begel sells warehouse to third party outside the 75% group (proceeds for Begel Ltd) – use this base cost plus indexation allowance again calculated from Oct 2016 to Nov 2016
Alley left Lob group on sept 16 (which is greater than 6 years anyway)
Begel has joined the group with Lob Ltd and Tree ltd. (Do not remember date)
degrouping definition is ..If a company leaves a group within 6 years after acquiring asset from another company within a chargeable gains group then there is a degrouping charge’ this degrouping charge is added to consideration received on the sale of the company leaving.
I don’t think degrouping is involved
3c or 3d) Group payment arrangements – does anyone know what is this about

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Q3A)
London 80 WROTE
‘what was the base cost of the building? …… As the company had bought the building of its parent it would have had to pay a degrouping charge as it left within 6 yrs so then you couldn’t possibly use the old base cost as cost? ‘

However Alley (Parent) sold to Begel (acquired an asset) on 1.5.2010 and Alley left the group rather than Begel.

1 Oct 16 or market value of warehouse base cost for begel plus indexation allowance from May 2010 to Oct 2016 – this is the base cost for future disposal

Nov 16 (date of transfer to the new company) -Begel sells warehouse to third party outside the 75% group (proceeds for Begel Ltd) – use this base cost plus indexation allowance again calculated from Oct 2016 to Nov 2016
Alley left Lob group on sept 16 (which is greater than 6 years anyway)
Begel has joined the group with Lob Ltd and Tree ltd. (Do not remember date)

degrouping definition is ..If a company leaves a group within 6 years after acquiring asset from another company within a chargeable gains group then there is a degrouping charge’ this degrouping charge is added to consideration received on the sale of the company leaving.
I don’t think degrouping is involved

3c or 3d) Group payment arrangements – does anyone know what is this about

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Q1 was too lengthy but simple, I think there was a lot to do, probably was far simpler then we might think but the sentences used and as normal ACCA lack of writing poorly questions, mislead students.

I mean it said what is his post income tax if he is incorporated rather than sole trader. I only now realised we were meant to use the 55000 x3 years trading profit to calculate his tax as sole trader. if he was incorporated then we deduct salary from 55,000 x 3years. The rest would be dividends and company pays corporation tax. salary has employer and employee class 1 NIC contributions but dividend has no NIC implications.
But makes it more complicated by saying he doesn’t want to be in higher rate band as he is already taxed at 40%. The question tries to make it too tricky and confuses students because of incorrect wording and not asking clearly what he wants.

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Having seen the paper and the above student mentioned says “think that was it’ makes him still unsure if the wording of question was right. Question 1 was the first question and 10-15 minutes wasting time trying to intererpret examiner is destined for fail. A whole question for 11 marks which is a very small area of syllabus is very unfair with P6 being a massive paper. I agree it was within capabilities but examiner has confused individuals with way he has written it throughout most of the paper.

Giving figure for Income tax liability & taxable profits is a deliberate attempt to confuse. I find this exam technique shameful. I took P2 which is similar in size and asked lecturer for guidance, he gave me article and hints- my hard work paid off because I answered difficult questions which were clear.

Also are we expected to remember due dates and payments and every single detail of syllabus. If revised well this minor area then yes exam was OK. However it was 11 marks shocking and deliberately to waste time. Major areas was not tested.

It seems we have to assume a lot and state the obvious. Voluntary Registration was also small area of syllabus and the answer was not even in lecture notes. This is about testing tax and accountancy knowledge and unfair to use bits and pieces from study guide. Thank you examiner for wrecking peoples career prospects.

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I do think that ACCA have been money motivated as 106 pounds + a paper and rising every year is surely a concern. Yet there exams questions are silly in order for you to fail. Peoples jobs rely on these exams and students work hard to pass and obtain job satisfaction. Examiners just see it as a joke to make us fail.
I do think that too many people have been taking these exams as it is international and the entry requirements are not high.

My lecturer once said that if it wasn’t challenging many people would be gaining this qualification. However the exams have become purposely for people to fail. Why don’t they increase there requirements like having a degree, this way the acca would be open to another market for high education students and examine the questions on quality rather than quantity and high fees. its a scam I agree. The questions set should be key exam areas of syllabus and not little bits of study guide where you cannot surely remember in exam amongst so much of P6 text which is massive. Why not reduce syllabus and examine in more detail with difficult questions requiring mix of calculations and explanation. For example the degrouping and question 5 which tested knowledge and theory with a little bit of calculations.

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