[thnguyen]

Passed FR first attempt with 76%. I am over the moon ??????. I couldn’t have done that without OpenTuition. Thank you very much for the lectures and notes!!!!

[thnguyen]

For section A I have mostly business combination and consolidated account adjustments for group, some of conceptual FW and some on the impairment of assets.

For section B I have (OMG!!?), government grant, agricultural and revaluation.

I got the SoPL and Lemon and Lime also. But for Strawberry I have a profit after tax deduction.

For Consolidated PL, we need to show Profit contributable to NCI and parent separately.

So the after profit for sub was time-apportioned 9/12 months and I did like 2 adjustments:

1. Extra depreciation – Plant
2. Inventory FV increase (accounted for on acq.)

Then scale down to NCI proportion. => NCI’s share of profit after acq.

For the group SoPL, I have a few adjustments
1. Extra Dep’n – Plant
2. Inventory – FV increase was already accounted
3. Unwinding of deferred consideration – Finance costs
4. UP (sale is from parent to sub – if I remember correctly).

Then substract the NCI’s profit from final group profit, we have profit contributing to Parent.

Finally for Lemon and Lime. I did go with Lemon, looking at the final figures, however, considering that Lemon’s profit might be overestimated with historic accounting and problem with liquidity (very low level of cash reserves) but high level of net assets turnover for a high-end company, and since the project is only 6 months in for Lime, my advice was to obtain more information in both companies. Lime for the full report of 1 year after project start and Lemon on the fair value assessment of asset, then we could judge which company should we go for. I couldn’t calculate current asset ratio tho, because I was a bit short of time and wanted to revise on my exam before submission. But the exam wasn’t so bad. I just hope I earned enough to pass *praying*

[thnguyen]

Dear Sir,

Thank you very much for your answer. It’s much clearer now for me.

Many thanks

[thnguyen]

Dear Keymaster,

Thank you very much for your reply. I found this in the end of BPP book’s big exercises. It was a book quite old, since 2014, so it might not be up-to-date.

So if I understand your reply right, the Debit in PBT account is only to balance out the record made previously in suspense account. Or is there any other logic behind it?

Best regards,

[thnguyen]

I’m not a tutor master so my answer might be wrong, but this is my understand abt your question.

Q1: NIC class 1 secondary and 1A for employees is a deductible, unless it’s for director or trader. NIC class 1 primary contributor is of course, paid by employees. Class 2 and Class 4 are paid by the trader themselves.

Q2: You need to make a claim if it’s a lifetime transfer => no CGT

Q3: I’m not sure what you mean by this. The difference might be the way you deduct the donations for company and individual/ trader. Local or national only matter if you are trader or company. First one is deductible in some case when calculating tax adjusted trading income while the later is not deductible when calculating tax adjusted trading income.

Q4: it’s a revenue excluded from the account but included for tax purposes. It’s treated like the trader making a sale to himself for tax adjusted trading income.

Q5: Time basis. If you have claimed the loss in the first year then that loss can’t occur twice. You have the answer for this question right in your question :).

[thnguyen]

The quarter payment date for corp. tax is the 14 of 7th, 10th, 13th and 16th of a company accounting year. The beginning payment date is always 7th month and the balancing date is always 16th month (which is 4th month from the beginning of next year), and this rule holds even if the company has a shorter period that year. The other middle payments are 3 months after the previous ones.

[thnguyen]

I’m just a learner, so I’m not too sure, but this is my understanding.

First is the limit, it’s only matter if your income is actually over 50,000/25%, which is 200,000. Then the 50k limit will change.

It’s the maximum of trade loss relief can be set against your total general income (excluding your trading income), which will include your interest income, property income…

So if you have property income of £70,000 (previous year) and trade loss carried back of (£100,000), some trading income (previous year) of ie £10,000, the maximum of trade loss could be set against your property income is £50,000, not the whole £70,000.

[thnguyen]

Oh, I see, I thought the restriction was on both general income and capital gains. Thank you very much for your reply.

[thnguyen]

Thank you very much for your reply 🙂

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