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@laughingcoffin said:
How did u guys calculate the ratios in question 31</blockquote
I got GP margin of 22% for both year and some different operating margin, but didn’t know how to calculate adjusted ratios as sub was sold in Jan itself so i assumed no number related sub was there in consol number.Made some adjustments for excluding profit on sale from admin expenses. Then wrote something on that line.
And how did you calculate the tax expense in Q32? How did you treat the 1.5m of previous year liability? This confused me much…
@surajnair said:
I cant recollect Goodwill question. Asset one if you’re referring to the section A mcq question,the right option is C(which says future benefits should be measured reliably) – not in the asset definition.Ya, that’s the one. But is it cost which need to be measured reliably and future benefit should flow into Entity. I selected that option I guess. MCQs will always create some problems, I really don’t know to tackle those well.
I did a paper based exam , it was ok, but I felt like some information was missing in question 32 for the excess depreciation calculation. The cost of property and previous depreciation was not in the question. Did anyone else have the same experience?
I did the same, but for the excess depreciation calculation, what did you do? I didn’t see any information on previous depreciation so was difficult to establish what the new depreciation and excess would be.
@topakin2002 said:
I did the same, but for the excess depreciation calculation, what did you do? I didn’t see any information on previous depreciation so was difficult to establish what the new depreciation and excess would be.excess depn would be the increase in value i.e. 3.5m divided by 20.
you do not require any extra info for that,because the depn has alreafy been charged on cost and so when the cost value increases,depn is only charged on that.The formula for excess depreciation is:
Depreciation on historical cost minus depreciation on revaluation cost.
So am confused.
Q32 tax comp CUD = P or L transfer
Was there Current tax or it was 26% of PBT calculation on SPLOCI?
I saw over, CR which would be treated negatively in CUD calc
Opening deferred tax 0
closing deferred excess times 26% … Movement transferred to CUD calcI calculated it as follows:
income tax for current year (PBT*26%)
plus last year liability
plus deferred tax change (basing on the temp taxable differences)Does it make any sense?
I didn’t know how to understand “the company had a liability of 1.5 m related to year ended on 31Dec20X7 (so past year)”I think there was a profit of 850 on disposal of subsidiary.
Net assets = 8000+1500-2000
Goodwill after impairment = 1300*50% =650
Consideration received = 9000
Profit =9000-650-7500 = 850Magdalena i also did the same PBT *26% plus last year tax plus deferred tax expene
@aaradhya33 said:
excess depn would be the increase in value i.e. 3.5m divided by 20.
you do not require any extra info for that,because the depn has alreafy been charged on cost and so when the cost value increases,depn is only charged on that.The question states that depreciation for the year was charged on the historical cost of the asset without considering the revaluation surplus so yes there will be be excess depreciation of 175$ against revaluation. The tricky part is people mistake the revaluation surplus which will be included under OCI to be net of depreciation which is not as revaluation to b shown under OCI is always gross unless if Deferred tax is applicable then it will be net of deferred tax.
Also the question requires annual transfer which will be applicable to SOCE so revaluation surplus will be 3500-175= 3125 and the 175 to be credited to Retained earnings.
@raeesabbas – good to hear that 🙂
I think the only thing unclear to us all is the income tax expense for the year which I will suggest we ask the Tutor.
we were to work for December 20×8 but we were given income tax liability of December 20×7 to be $1.4m and additional taxable temporary difference of 1.5m I think….
anyone with idea should pls share
I took last year’s liability and added it to the deferred tax charge for the year which was 1.5 mill ×26%
@23123fd said:
I took last year’s liability and added it to the deferred tax charge for the year which was 1.5 mill ×26%i did thesame but are we not suppose to consider PBT *26????
I don’t think so , as all the practice sums I have done we have never done that , but I could be wrong
@23123fd said:
I don’t think so , as all the practice sums I have done we have never done that , but I could be wrongExactly i was going to say thesame….never came across a Q like dat b4 but anyways let’s just hope for the best….Goodluck to us all!
The exam paper was manageable giving any one well prepared a fair chance at passing.
3600 is the correct answer. We have to remove parents share of 60%, since minority share holders portions needs to be recognised as profit in the consolidated FS.
There was a question stating
Research cost are expensed using straight line
And another statement anyone remember
Anyhow i put neither statement was correct since research costs are written off not apportioned somehow using straight line
@laughingcoffin said:
There was a question statingResearch cost are expensed using straight line
And another statement anyone remember
Anyhow i put neither statement was correct since research costs are written off not apportioned somehow using straight line
True research is expensed when incurred. however the plant depreciation used on development is capitalised
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