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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!
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.
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