ATXPOLL – Paper P6 June 2010 exam was … Post your comments here

should we calculate CA for the 1st question on office furniture and office computer and equipment?

yeah we had to calculate...

Any thoughts on the 12 part IHT computation anyone? What was the point of that?

Also does anyone know what the specific requirements for senior accounting staff per FA 2009 were? Not covered in my notes as far as I can see. Everyone I asked couldn't answer the question that was asked and wrote some general thoughts on errors instead.

I didn't do a calculation for capital allowences, I just allowed the whole amount as it would be covered by the AIA, but I don't know if that was right.

I felt the exam was far too time pressured, there just wasn't enough time to think logically and make sence of what you were being asked to do, especially in the compulsory section of the paper.

Does anyone feel the same or is it just me?

@jennyapowell said:
I didn't do a calculation for capital allowences, I just allowed the whole amount as it would be covered by the AIA, but I don't know if that was right.
I felt the exam was far too time pressured, there just wasn't enough time to think logically and make sence of what you were being asked to do, especially in the compulsory section of the paper.
Does anyone feel the same or is it just me?

I felt exact the same. The question was set in such way that I didn't feel that I had any chance to show off what I know:
1) Not enough time to think through properly, spent very long time just try to read and understand the questions.
2) After all that, I still didn't quite understand what the questions was asking in relation to the information he gave?
3) I moaned about this with my last exam( failed 44). I think he did it again, worse
We all know how to contact clients to make enquiries, I wished Rory Fish was in the exam hall so I could clearify with him on the spot!

I am not sure if Im right but I allowed only 50 000 of AIA capital allowances as I thought it was restricted for group companies to one allowance only to be allocated to the ones they wish.I applied 40% FYA to the balance.Is that correct?

Just looked it up - its only for related companies so Im wrong :(

Found the paper far too time pressured and structured in an even more confusing way than UK tax law itself. Self-studying with little exposure to tax to this extent as I work in industry.
Have never found anything so tedious and illogical in my life.
Did it because I was exempted from F5 but will be studying F5 and P5 for December any day. The thought of resuming P6 study again would drive me to drink.

@pjacres said:
Any thoughts on the 12 part IHT computation anyone? What was the point of that?

Also does anyone know what the specific requirements for senior accounting staff per FA 2009 were? Not covered in my notes as far as I can see. Everyone I asked couldn't answer the question that was asked and wrote some general thoughts on errors instead.

I calculated IHT on these 12 options:
option 1: lifetime gift, value of property 450,000 and he dies in Dec 2012
option 2: lifetime gift, value of property 450,000 and he dies in Dec 2014
option 3: lifetime gift, value of property 600,000 and he dies in Dec 2012
option 4: lifetime gift, value of property 600,000 and he dies in Dec 2014
option 5: lifetime gift, value of property 900,000 and he dies in Dec 2012
option 6: lifetime gift, value of property 900,000 and he dies in Dec 2014
option 7: property in will, value of property 450,000 and he dies in Dec 2012
option 8: property in will, value of property 450,000 and he dies in Dec 2014
option 9: property in will, value of property 600,000 and he dies in Dec 2012
option 10: property in will, value of property 600,000 and he dies in Dec 2014
option 11: property in will, value of property 900,000 and he dies in Dec 2012
option 12: property in will, value of property 900,000 and he dies in Dec 2014
Rory Fish wrote an article on Finance Act 2009 in student accountant in Sept 2009 and there was a paragraph in it about senior accounting officers:
"Rules have been introduced that oblige the senior accounting officer of a large company or group of companies to:
¤ ensure that the company establishes and maintains tax accounting arrangements that enable its tax liabilities to be
calculated accurately
¤ provide an annual certificate to HMRC to the effect that appropriate accounting arrangements were in existence together with an explanation, where necessary, of any inadequacies. "

@inese1972 said:
Just looked it up - its only for related companies so Im wrong :(

i think there was the single AIA for the entire group. Groups were 100% owned groups so think giving a single AIA was the solution. and giving 40% CA on the remainder..

@royalnck said:
I calculated IHT on these 12 options:
option 1: lifetime gift, value of property 450,000 and he dies in Dec 2012
option 2: lifetime gift, value of property 450,000 and he dies in Dec 2014
option 3: lifetime gift, value of property 600,000 and he dies in Dec 2012
option 4: lifetime gift, value of property 600,000 and he dies in Dec 2014
option 5: lifetime gift, value of property 900,000 and he dies in Dec 2012
option 6: lifetime gift, value of property 900,000 and he dies in Dec 2014
option 7: property in will, value of property 450,000 and he dies in Dec 2012
option 8: property in will, value of property 450,000 and he dies in Dec 2014
option 9: property in will, value of property 600,000 and he dies in Dec 2012
option 10: property in will, value of property 600,000 and he dies in Dec 2014
option 11: property in will, value of property 900,000 and he dies in Dec 2012
option 12: property in will, value of property 900,000 and he dies in Dec 2014
Rory Fish wrote an article on Finance Act 2009 in student accountant in Sept 2009 and there was a paragraph in it about senior accounting officers:
"Rules have been introduced that oblige the senior accounting officer of a large company or group of companies to:
¤ ensure that the company establishes and maintains tax accounting arrangements that enable its tax liabilities to be
calculated accurately
¤ provide an annual certificate to HMRC to the effect that appropriate accounting arrangements were in existence together with an explanation, where necessary, of any inadequacies. "

Just didnt have the time .. i knew the 12 possibilities.. and 21 min for this question is NOT enough in exam conditions. figuring out the relation.. even writing the 12 solution if you knew the answer would i guess take 15 to 20 min..

i guess i made 4 options and then saw the time and proceeded to the next question. if i didn;t i would have left a whole lot of papper

I give AIA all43000 to the marginal co which profit 168 and the balance 7000 AIA
to the other co and 40 % fya
for iht it is the last part in exam i do so harry only write few options

thanka

@mykekal said:
Hi, did anyone attempt the section 2 question that speaks about sale of 20% shares by Vine to her store manager for $64,000.00. If yes, how did you arrive at the base cost of the shares?

Yes I did that question and I did the calculation for the capital gain on the incorporation using Incorporation relief and ER and calculation the value of the shares as a part consideration for the sale of the business.

i got taken the chn variant yesterday... It is not very hard but not easy cause of the tight frame Hope i can pass since this is the last sitting.. Bless me.

wow..Rory Fish really doesn't know we only have 3 hours and 15 minutes.. had to read the LONG questions 2 or 3 times...sigh.

I thought equipment only qualifies for 40% FYA on the expenditure between 6.04.09-05.04.10 as per ACCA notes, so I only applied 20%WDA, after AIA was i wrong?

@ksusha said:
I thought equipment only qualifies for 40% FYA on the expenditure between 6.04.09-05.04.10 as per ACCA notes, so I only applied 20%WDA, after AIA was i wrong?

Yeah i was just about to mention this, ksusha you did it absolutely right and i also followed the same approach.

Thanks, that makes me feel a bit better. What option questions everyone did?

i attempted 3rd and 4th

They were all owned by Cacao..so doesnt tht make them related? We have to spread the 50000 across..all of them right?

Did anybody do the question with the individual going to work for the same company in a different city?

Did you find either option resulted in a loss of money for him?

Which option did you find was most beneficial?

the paper was hard,..........having to keep reading the two emails in the qn and then answer was time consuming.................................i think the examiner was abit mean

I think they make tz paper hard and confused purposely. They don't want many people to get affiliated. Overall not very happy coz I supposed I prepared well tz tyme. Anyway let see da result . It's not da ending of life.

Re Travel to Brum/Manchester Question

I made it that both options were beneficial (rather than being worse off) but that the use of his own car option was best. Made a point about the non-cash effect on the depreciation of his car being a consideration too.

I'm curious that you found one option would make him worse off. Perhaps I missed something in the Question...?

Re Travel to Brum Manchester Question
i calculate the the benifit after tax for the two optins
and find that the accommodation is better as for his car he paid rent to his sister and dep all this not deduted so the car cost him more

I found the same result as others mentioned with both better off and the use of car and fuel was most beneficial.

The question through me though as it mentioned making a loss and calculating the increase in salary needed to make it beneficial.

Hi everyone, I have found a link on the ACCA website which offers an examination feedback form on specific papers. If you feel that the paper was unjust and the examiners language unnecessarily complicated please complete the form. The examination board use these feedback forms when setting marking schemes, before exam results are published. it could result in a few extra marks if the board agrees - so definitely worthwhile.
The link is noted below:
https://www.accaglobal.com/allnews/students/2010/NEWSQ2/News/3331775

Hi

I found that the option where he was given the flat resulted in a loss :) I then calculated the extra salary needed... not sure if that was right though after looking at the comments!!!

what benefit costs did you have in relation to the option with the company flat?

i did 12 marks question of IHT on the assumption as gift with reservation...how much i could gain marks on the basis of this assumption...plzz kindly commnuicate