• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Tippletine Co – March / June 2018

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Tippletine Co – March / June 2018

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • July 22, 2020 at 12:38 pm #577652
    corilove
    Participant
    • Topics: 4
    • Replies: 2
    • ☆

    Dear John,

    I don not fully understand the calculation of Tax Shield on loan and Tax Relief Lost and Subsidy Benefit from the answers made by the examiners.

    Why Tax Shield on loan and Tax Relief Lost is multiplied by the difference between AF and DF ?

    And for Subsidy Benefit should’ t be also multiplied by (1 – Tax rate) because is a saving ?

    Thank you very much for your time and your answer

    I admire your continuous hard work , dedication and passion 🙂

    Cori

    July 22, 2020 at 2:26 pm #577662
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    There is a one year delay in the tax, and therefore the tax benefit on the loan is from time 2 to 5. The discount factor for an annuity from 2 – 5 is the 5 year annuity factor less the 1 year annuity factor.

    As far as the subsidy benefit is concerned, there is indeed a tax saving, but again because of the 1 year delay in tax the benefit is from years 2 – 5. So the benefit of the subsidy is 3,038,000 but the resulting tax saving is 868,000.

    July 22, 2020 at 2:49 pm #577665
    corilove
    Participant
    • Topics: 4
    • Replies: 2
    • ☆

    Thank you so much 🙂

    July 23, 2020 at 8:55 am #577727
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Tippletine Co – March / June 2018’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Nashra30 on CIMA E1 Chapter 3 Test
  • azubair on Financial Performance Measurement – ACCA Performance Management (PM)
  • j.akshaya on Group SFP – Example (Basic consolidation) – ACCA Financial Reporting (FR)
  • rishitxx on ACCA BT Chapter 1 – The nature and structure of organisations – Questions
  • singhjyoti on Basic group structures – SPLOCI introduction and example – ACCA (SBR) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in