Forum Replies Created
- Posts
This is how o answered the question. The gain on the sale of the lease was calculated using the percentages given in the question, this is because it was the sale of a wasting asset.
The deferred tax treatment from the sale in 2007 was rolled over to an asset with less than 60 years so was not deferred but was frozen and crystallised after 10 years.I also had that paper. I’d be interested to know how you answered some of the questions
@jamesrob90 said:
One that got me was 85 items in inventory , 20’are defects so will be sold at 50% of their selling price. Selling price £15 , costs 1.50 to sell and cost of the items 8 . What’s the value of inventory, anyone get this ?Am sure I done 65 x 8 -£520 then added on £6 x 20 – £120 to get £640
Is that correct ?
I got that question as well and wrote the same answer as you. The trick was not to include the selling costs in the value of the inventory that were not defects and to only deduct from the sales price to get the NRV for the ones with the defect.
@sjkk said:
i had the 15 months question and i think the captial allowances were all in the 3rd month period if you look at their dates that meant they had to be only deducted by 3 months profit by time apportion to 3 months i think if anyone else had the same question please share your thoughts about this overall section C was too much mess for meWas this the question where they gave you a draft of the computation with some missing figures? That’s what I had but I didn’t notice that it was for 15 months. I hope that you’re talking about a different question.
@tudd94 said:
My time management was way off 🙁
Section A was OK I guess, I struggled with the payoff table asking you to provide two values that would fit the grid. Section B was fine up until the concert question came up… I got a margin of safety of 85%. Things went a little worse when it was asking to give the profit figures after break even is considered whilst excluding the private booths… I knew the formulae perfectly yet I couldn’t get back to the numbers provided. I had to end up rushing because I spent just over an hour on section A. Section C was crazy, a question on Balanced Scorecard, I knew it had something to do with Kaplan and Norton’s model, sadly I couldn’t remember it with the time pressure. The 16 mark question on Non financial performance measures came as a shock. I put in 2 bullet points with the measures which I thought might be relevant and that was it! The last questions on section C related to expenditure budget (I managed to submit something whilst excluding the depreciation charges as I recalled from an old paper not to include it in expenditures… but I maybe wrong), incremental budgeting and zero based. I managed to write a paragraph under each of the discussion parts but it may not be enough to get a good mark. I was hoping for more calculations but alas the worst came to pass…I put in one disadvantage for incremental budgeting, in that it builds upon past inefficiencies and then I moved onto suggesting using a zero based approach for arriving at better costs, this might have not been in the scope of the question. The last part on zero based budgeting, I could just about describe it but I’m not sure if was enough. Well I’ve learnt a lot from the experience. It would have been easier if they gave me a question on ABC costing or Lifecyle or the topics that I focused my revision on! Even a EMA question would have been a blessing… They should give us noise cancelling headphones, I hated the keyboard bashing noises… kept getting distracted. Oh well, you live and learn, sure I’ll pass it on my next attempt!If it’s any sympathy, I had the same section C questions as you and struggled with them. I also would have preferred more calculations. I wrote very similar answers for the disadvantage of incremental and for the benefits of ZBB.
I guess i’ll find out in 6 weeks how well I did.@criss07 said:
Because it sounds like we had the same exam…did you have the question about the concert in Part B? If you did do you remember if the margin of satefety was 85% or 86% I can’t remember exactly :))I had that question but I didn’t understand what it meant by margin of safety. I am not confident that I did well on that question.
I had 1 question about Incremental Budgeting and ZBB and the other about the Balance scorecard.
There was very little calculation which I hoped there would be more of but hope I did enough.
