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How to calculate increase in NCI

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › How to calculate increase in NCI

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • April 14, 2021 at 3:14 pm #617630
    Luna777
    Participant
    • Topics: 7
    • Replies: 6
    • ☆

    Hi Chris,

    In this lecture (https://opentuition.com/acca/sbr/group-sfp-example-5-acca-sbr-lectures/) you have calculated the increase in Jone’s NCI using 20% x (120 + 23) = 28.6 which differs from the 20/10 x 14 = 28 shown at the answer page. Which method is correct?

    Thank you!

    April 14, 2021 at 3:47 pm #617634
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3396
    • ☆☆☆☆☆

    Some inconsistency in practice and in our notes as well. I need to have another look at this question for the next edition.

    Go with Chris’s numbers in the lecture.

    As the exam is primarily written the marks are for:
    1. Explaining that the difference goes to equity not SPLOCI
    2. An attempt at calculation which appears logical.

    April 15, 2021 at 1:37 am #617678
    Luna777
    Participant
    • Topics: 7
    • Replies: 6
    • ☆

    Thanks, Stephen!

    April 15, 2021 at 1:51 pm #617743
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3396
    • ☆☆☆☆☆

    My pleasure

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘How to calculate increase in NCI’ is closed to new replies.

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