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Acasta Question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Acasta Question

  • This topic has 3 replies, 2 voices, and was last updated 2 months ago by JillyB.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • December 4, 2022 at 4:18 pm #673349
    gkumar84@live.com
    Participant
    • Topics: 6
    • Replies: 4
    • ☆

    Acasta Ltd owns 75% of the ordinary share capital of Barge Ltd and 100% of the ordinary share capital of Coracle Ltd. Barge Ltd owns 75% of the ordinary share capital of Dhow Ltd. Coracle Ltd owns 51% of the ordinary share capital of Eight Ltd. Which companies, along with Coracle Ltd, are within Acasta Ltd’s chargeable gains group?Which companies, along with Coracle Ltd, are within Acasta Ltd’s chargeable gains group?
    A Barge Ltd, Dhow Ltd and Eight Ltd
    B Barge Ltd only
    C Barge Ltd and Dhow Ltd only
    D None of the other companies

    From the lecture my understanding was the the parent company will have to satisfy the relationship of >=75% but the examiner report says as follows. Confused.com now

    This question tested candidates’ knowledge of the group relationship which is necessary for chargeable gains
    purposes. The most popular answer was B, with candidates appreciating that Barge Ltd was included because of
    the 75% group relationship with Acasta Ltd (and that Eight Ltd was correspondingly excluded). However, Dhow
    Ltd is also included in the chargeable gains group because the 75% group relationship need only be met at each
    level, subject to Acasta Ltd having an effective interest of over 50% (and 75% of 75% is 56.25%). So the
    correct answer was C

    December 5, 2022 at 1:15 pm #673476
    JillyB
    Moderator
    • Topics: 0
    • Replies: 190
    • ☆☆

    75% for losses direct and indirect interest in subsid.
    75% direct and 50% indirect for gains groups.

    December 5, 2022 at 1:58 pm #673481
    gkumar84@live.com
    Participant
    • Topics: 6
    • Replies: 4
    • ☆

    Awesome!! will imply this.Thank you.

    Regards G

    December 5, 2022 at 11:14 pm #673578
    JillyB
    Moderator
    • Topics: 0
    • Replies: 190
    • ☆☆

    Great

  • Author
    Posts
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