[TMaC123]

Thanks – excellent service! It’s working again.

[TMaC123]

Thanks Kim. I tried clearing Cookies to see if that would work but no joy.

I lost all my saved Google passwords in the process, so had to re-set them all – at least my security is now up-to-date!

[TMaC123]

Hi Chris,

I’m confused with this one too. Its the Parul Co section C Ratio Analysis question where the parent has acquired a sub and we need to get back to the individual statement in order to compare like for like with the prior year.

If we have the consolidated accounts and we are trying to get back to the individual accounts then we would add back the 1600 expense in the parents books.

But the other 1600 relates to the revenue in the subs books (as S sold to P), so if we are trying to get back to the individual accounts of the parent then why would we add it back to the revenue in the parents books (as the revenue would have been deducted on consolidation from S’s revenue in S’s books)?

In a different question (Perkins) where there has been a disposal of a sub the solution only makes the one sided adjustment when trying to get back to the individual accounts. So its a bit confusing.

[TMaC123]

Thanks Kim, that’s really useful.

[TMaC123]

Looks good but the answer returns written black on a red background. I’m colour blind and struggle to see black written on red. Could this be changed? I think many people who are colour blind struggle with this particular contrast.

[TMaC123]

Thanks Suzanne and Jon.

I also found this guy on YouTube who has made a series of videos that explain it really well using past exam questions –

https://www.youtube.com/watch?v=6ucEhvZHm4g&list=PL6kA1Wube8vkViO7YHGucFm92IIJ1Yw2f&index=6

Just thought I’d share in case anyone else is struggling with this area. The videos in the link above really helped in my thinking process.

[TMaC123]

Passed with 89%. Thanks to Open Tuition and tax tutor ?

[TMaC123]

Thanks for the suggestion. I have read the notes and already watched the lecture but still a bit unclear. My thinking so far,

Jack has plenty remaining AA available so increasing the contribution won’t result in an AA charge

He is restricting his contribution to the amount falling into the higher rate band (saving tax at 40% – 20% at source and 20% through extension of the BRB).

So if he invests more than what falls into the higher rate band then he is no longer taking tax that would be taxed at 40% into the 20% bracket.

But what would then happen with the additional amount (assuming its still lower than the available AA)? I’m not sure what relief he would get for the additional contribution?

I hope I’m, making sense!

[TMaC123]

Hi,

I struggled with this Q to which is also in the most recent BBP revision kit. I understand the bit about getting the higher rate relief on the gross contribution paid of 40%.

I’m struggling to understand why its the optimal amount. So for example, if Jack paid contributions that were over the amount of income that qualified for tax relief at the higher rate then what would happen in this situation?

[TMaC123]

Thanks Jon, really useful link

[TMaC123]

Thanks Kim, I think it was a problem on my end. If I zoom out a bit on the PDF view it seems to correct the format.

[TMaC123]

Thanks, that makes sense now!

[TMaC123]

Thanks Kim, I’ll have a look on there.

[TMaC123]

Thanks Mike, your explanation makes it really clear. I think I was half way there but now fully understand it.

Cheers,
Thomas

[TMaC123]

Thanks Mike, much appreciated.

Thomas

[TMaC123]

Thanks, that’s some really great advice. I wouldn’t have thought to complete half the exam kit questions as I go through and half at the revision stage, but makes a lot of sense.

[TMaC123]

Thanks Mike, that makes sense.

Just wanted to feedback that I think your notes and lectures are very good. They give you exactly the info you need to work through the exam kit quickly while getting most of the answers correct, which is ideal when you are working full time and short on time to study.

[TMaC123]

Thanks Mike, that’s really useful.

No idea why it says that on my Avatar – I didn’t write that on it and I’m definitely not an author of free ACCA & CIMA courses! I just checked my profile and it doesn’t seem to say it on my end. It sounds like an Open Tuition slogan…

[TMaC123]

Thanks John, that makes sense now. Hopefully the exam will have some easier questions. Thanks for your help.

[TMaC123]

Hi John,

They definitely don’t mention scrap value in the question. This is their workings:

Normal loss = 10% × 400 = 40 litres

Actual loss = 400 – 330 = 70 litres

Abnormal loss = 70 – 40 = 30 litres

EUs

Material Conversion
Output 330 330
Normal loss 0 0
Abnormal loss 30 18
_____ _____
360 348

Cost per EU

Material = (400 × 8)/360 = $8.89

Conversion = 4,800/348 = $13.79

Valuation of output

330 × ($8.89 + $13.79) = $7,484

I’ve got the exam booked for tomorrow and getting all the other questions correct so I should probably just ignore this one and move on, but a bit annoying that I can’t get my head around it.

[TMaC123]

Thanks John, I was confusing myself with the 50% complete part and missed the 60% and 20% complete for opening and closing WIP. Makes sense now you have explained.

[TMaC123]

Thanks John, that’s super clear.

[TMaC123]

Thanks John, that’s reassuring

[TMaC123]

Thanks John, that’s really clear.

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