CAP2 Repeats 2012

national express · 28-09-2012 11:33AM

In calculating consolidated NCI and retained earnings for a group with a foreign sub:

Would you convert the post acquisition retained earning at the average rate, or the closing rate?

I would have thought as it's a balance sheet item, it would be converted at the closing rate, and any difference would be taken care of by the FX translation reserve calculated?

HeinekenTicket · 28-09-2012 12:42PM

national express wrote: »

In calculating consolidated NCI and retained earnings for a group with a foreign sub:

Would you convert the post acquisition retained earning at the average rate, or the closing rate?

I would have thought as it's a balance sheet item, it would be converted at the closing rate, and any difference would be taken care of by the FX translation reserve calculated?

Average rate for post-acq retained earnings.

Closing rate applies to the assets and liabilities.

srm23 · 28-09-2012 02:14PM

not bothering with that to be honest, same examiner, he's hardly going to ask the same question

national express · 28-09-2012 04:26PM

srm23 wrote: »

not bothering with that to be honest, same examiner, he's hardly going to ask the same question

Suppose that's true. I thought the summer q and that united question are pretty good case studies though as they've got a lot of what could possibly come up.

What stuff are you concentrating on/covering yourselves?

srm23 · 28-09-2012 04:45PM

i did all the past papers although skipped a few questions from around 2009 that were really tough. and went through the question packs that were on the cai website during the year for each standard the revision course mentioned, at least now ive an idea of most things for section b!

prob not gonna bother with that fx question, or ratios this time. hoping for something like contruction contracts! they got a lovely question on that in summer 2009 easiest 18 marks ive come across!

i did both Alpha & Herd a good few times hoping for something like one of them!

went throught disposal of subsid today, hoping for none of that or step-acquisition which is the only thing ive prob not looked at at all

ive done a bit of cashflow but ill be seriously relying on the solution im bringing in to get me through that!

rockman15 · 28-09-2012 05:20PM

srm23 wrote: »

i did all the past papers although skipped a few questions from around 2009 that were really tough. and went through the question packs that were on the cai website during the year for each standard the revision course mentioned, at least now ive an idea of most things for section b!

prob not gonna bother with that fx question, or ratios this time. hoping for something like contruction contracts! they got a lovely question on that in summer 2009 easiest 18 marks ive come across!

i did both Alpha & Herd a good few times hoping for something like one of them!

went throught disposal of subsid today, hoping for none of that or step-acquisition which is the only thing ive prob not looked at at all

ive done a bit of cashflow but ill be seriously relying on the solution im bringing in to get me through that!

pretty much the exact same as i've done...literally the same today.

I have a seperate question: im struggling to nail down whether I'm to use the full or partial consolidation method. Is there any indicators to suggest which is which? Obviously when you're given the amount NCI is to be valued at you give the share of goodwill. But in the Alpha Q (S11) for example, theres no clear indicator? Any suggestions or ways to remember would be welcome. Fairly panicing about it at this stage.

national express · 28-09-2012 06:16PM

Feeling quite jealous of people only repeating fr at the minute. There's another solid week for that.

I have tax so debating wether to go hard on tax for the next few days or keep ticking away at fr too.

Does anyone have any info on the format of the tax exam? I've had mixed predictions from people - some say it should be back to the previous format of mainly computational, whereas some say it would have been written at the same time so it'll be theory based again.

Really annoying studying for an exam you don't know the format of.

rockman15 · 28-09-2012 06:22PM

national express wrote: »

Feeling quite jealous of people only repeating fr at the minute. There's another solid week for that.

I have tax so debating wether to go hard on tax for the next few days or keep ticking away at fr too.

Does anyone have any info on the format of the tax exam? I've had mixed predictions from people - some say it should be back to the previous format of mainly computational, whereas some say it would have been written at the same time so it'll be theory based again.

Really annoying studying for an exam you don't know the format of.

im the same. Spending Sunday and Monday on tax, then getting back into FR wednesday and thursday.

i'd expect it to have at least the same amount of theory as the summer. The examiners report largely saying poor application of theory to situations and poor explanations where requested. I dont think the examiner has changed, if thats what he's saying expect the same.

The Phantom Jipper · 29-09-2012 04:57PM

So what's on everyone's "bare minimum" list? Is this a pretty fair and generic summation?

Consols
IAS type q
Ratios
Cashflows
Some of the meatier IASs - 11, 16 etc?

Judging from the resit lectures in the Institute, he seemed to be leaning toward the first three making an appearance again and basically had to be coerced into running through a cashflow question. He also gave short shrift to the idea of a sub disposal making an appearance.

Also what're peoples thoughts on cashflows? I'll avoid them on the day if I can but i'm afraid of them getting snuck in to q1 either as an add on to an IAS1 question or appearing as a consol cashflow like it did a few years ago. Are the chances of that fairly remote do ye reckon?

myshirt · 29-09-2012 09:37PM

To be honest, I'm expecting this FR paper to be a consol in Q1 involving a reduction of % holding down to joint control, an soce and eps; a single entity cashflow in Q2; four 4/5m in Q3; and a Trial Balance single entity with simple FX, a lease calc and a deferred tax calc in Q4.

national express · 30-09-2012 07:25PM

Do you think the resit course lecturers have any knowledge at all of what's likely to come up?

It seems strange to do up that resit plan that concentrates on certain topics if they had no idea what was going to come up.

I might concentrate on covering all those topics on Wednesday and Thursday.

Any predictions for Tax?? Or anyone have any recommendations for how to spend tomorrow in regards to Tax?

The Phantom Jipper · 30-09-2012 09:13PM

national express wrote: »

Do you think the resit course lecturers have any knowledge at all of what's likely to come up?

It seems strange to do up that resit plan that concentrates on certain topics if they had no idea what was going to come up.

I might concentrate on covering all those topics on Wednesday and Thursday.

Any predictions for Tax?? Or anyone have any recommendations for how to spend tomorrow in regards to Tax?

Just on the resit lectures, obviously everything I say can be taken with a massive pinch of salt, I don't have a clue BUT the lecturer did have an air of confidence about him that I think would have been unwise if he genuinely didn't have some sort of insight into the examiner's thought process. One of the comments he made a few times was that this examiner is focused on "testing the basics". What that means is anyone's guess but it does seem to reduce the possibility of certain topics making an appearance.

That said, a poster above fancies some sort of sub disposal to appear so it really is anyone's guess. Unfortunately for us.

Tricky1979 · 01-10-2012 12:18PM

Myshirt - is there any previous question to refer to for your prediction for "Q1 involving a reduction of % holding down to joint control".

I agree with the last poster that the revision lecture said with confidence that the basics will be the focus - I think my basics are a lot different to his!

Did anybody to the chartered grind school revision courses - and did they have any pearls of wisdom?!

rockman15 · 01-10-2012 01:41PM

did it for FR Summer exam. Was alright. I've now got a hybrid approach to my consolidation questions but the CGS method is only helpful when it it is a straight forward consolidation as they were prior to maybe, autumn 2011. Since the Q has become more on time pressure the method isnt exactly suited to scoring a lot of marks as you would fill in the SOFP and SOCI and SOCE as the last "steps" ini the process, which is a bit ridiculous when you think about it as its where the majority of the marks are going!

myshirt · 01-10-2012 02:38PM

Does anyone know if we can write on our own paper during reading time? Or is it just the physical paper itself?

national express · 01-10-2012 03:19PM

You can't write in the answer booklet if that's what you mean.

You can make notes on the exam paper just.

national express · 01-10-2012 03:25PM

rockman15 wrote: »

did it for FR Summer exam. Was alright. I've now got a hybrid approach to my consolidation questions but the CGS method is only helpful when it it is a straight forward consolidation as they were prior to maybe, autumn 2011. Since the Q has become more on time pressure the method isnt exactly suited to scoring a lot of marks as you would fill in the SOFP and SOCI and SOCE as the last "steps" ini the process, which is a bit ridiculous when you think about it as its where the majority of the marks are going!

I've got a bit of a hybrid method too. But really, I still can't see myself realistically being able to fill in the majority of the sofp, soci, or soce until I've worked out how most of the adjustments effect the numbers.

On that topic, I really hope they don't ask for all 3 in question 1. Not from a difficulty point of view, it's just near impossible time restraint wise. Would you all be expecting that to be the way it's asked, as it was in June?

myshirt · 01-10-2012 04:11PM

national express wrote: »

You can't write in the answer booklet if that's what you mean.

You can make notes on the exam paper just.

I would like to write on a sheet of my own to plan my answers. Have it constantly by my side.

Or alternatively, I will start a Q in the reading time; and then copy it down as soon as they say we can open the answer script.

national express · 01-10-2012 04:12PM

Quick question for anyone that passed tax, or anyone who's doing it tomorrow.

In a ct comp, do you think you need to use the terms 'section 243b' or section 396b(3) relief, or is it ok to just write 'loss relief forward' or 'group relief' etc?

national express · 01-10-2012 04:14PM

myshirt wrote: »

national express wrote: »

You can't write in the answer booklet if that's what you mean.

You can make notes on the exam paper just.

I would like to write on a sheet of my own to plan my answers. Have it constantly by my side.

Or alternatively, I will start a Q in the reading time; and then copy it down as soon as they say we can open the answer script.

I think there might be a scrap booklet you can use but I'm not 100% on that.

rockman15 · 01-10-2012 04:29PM

No referring to them like that is fine id say. examining how to use them rather than terminology IMO

srm23 · 01-10-2012 07:30PM

myshirt wrote: »

To be honest, I'm expecting this FR paper to be a consol in Q1 involving a reduction of % holding down to joint control, an soce and eps; a single entity cashflow in Q2; four 4/5m in Q3; and a Trial Balance single entity with simple FX, a lease calc and a deferred tax calc in Q4.

why is that your expectation,on the basis that that has never been asked in q1 before?

lauma · 01-10-2012 09:25PM

The very best of luck guys to everyone!

fmcattack · 01-10-2012 10:17PM

Anyone else repeating Audit?

I couldn't afford the institute classes, was there any hints or tips? Really find it hard to study for Audit, just doing exam questions at moment.

Best of luck to anyone doing tax tomorrow.

srm23 · 02-10-2012 03:49PM

well what did everyone think of tax?

panicked when i first read it, but hopefully passed in the end.

would have preferred to just be given a loss for 1(b) rather than calculate my own and no doubt have all that wrong, so hopefully the losses was more about application.

national express · 02-10-2012 04:01PM

Was the losses just back then value then value carried back. With a small amount of tax in each year due to the chargeable gain?

It's been a good while since I covered cessation rules for losses. I put down that they could be carried back to the 3 preceeding years. Not even sure if there's truth in that at this stage. But in my head that is a rule that I learnt a few weeks ago.

I left it until the end because I wanted to get the rest done first and then pacicked when I got back to it.

I think I mixed up a few reliefs etc.

I used dwelling exemption in one question. And had government securities as being exempt. But I decided they weren't exempt just before the end but didn't have time to change it. Were they?

The horses really threw me as well. For some reason I thought they were trying to catch us out, and then wasn't sure whether there would be a CGT gain on them at all. They gave the purchase price and everything though so I decided that they were obviously looking for a gain on that too.

I felt a lot more confident going in than last time, and a lot less confident coming out.

srm23 · 02-10-2012 04:10PM

national express wrote: »

Was the losses just back then value then value carried back. With a small amount of tax in each year due to the chargeable gain?

It's been a good while since I covered cessation rules for losses. I put down that they could be carried back to the 3 preceeding years. Not even sure if there's truth in that at this stage. But in my head that is a rule that I learnt a few weeks ago.

I left it until the end because I wanted to get the rest done first and then pacicked when I got back to it.

I think I mixed up a few reliefs etc.

I used dwelling exemption in one question. And had government securities as being exempt. But I decided they weren't exempt just before the end but didn't have time to change it. Were they?

The horses really threw me as well. For some reason I thought they were trying to catch us out, and then wasn't sure whether there would be a CGT gain on them at all. They gave the purchase price and everything though so I decided that they were obviously looking for a gain on that too.

I felt a lot more confident going in than last time, and a lot less confident coming out.

yeah i set against the prior year case 1 first, then the current year on value basis, then back on prior year value basis, then the remaineder against 2009 on case 1. i did the chargeable gains on value basis also @12.5% can you not do that?

for the q1(d) on Horses, i put them down as wasting chatels, but my friend computed CGT on them saying they were his trade. what did yous put?

srm23 · 02-10-2012 04:17PM

national express wrote: »

I used dwelling exemption in one question. And had government securities as being exempt. But I decided they weren't exempt just before the end but didn't have time to change it. Were they?

i dont think i used dwelling exemption in it, was this q4?
i said the dwelling exemption wasn't available as he had gifted a house to her with option to revoke, assuming as he died before he revoked this became a disposition to her at that date, so took away the cost of the property from her CAT group releif and used the rest on the house she lived in.

i didnt know for this, the government securities were for a guy living in aus right? i just said exempt cause domiciled in aus, i had no idea.

how did everyone treat the retirement relief in q5?

national express · 02-10-2012 04:19PM

I put them as CGT, but I was originally thinking what you put. What made me change my mind was rememberring about farming assets - we include the bloodstock in CGT calc for that don't we because it's part of the trade? My mind's a bit wrecked today though so not sure.

For the value basis at 12.5% - see I had previously thought you could, but literally this morning I read over some notes I had taken down that mentioned value basis could only be used against 25%. It stuck in my head because it confused me so I decided to stick to it. Probably wrong though

Ahh, the amount of things in that exam that you can mix up by just pressuring yourself!

national express · 02-10-2012 04:22PM

srm23 wrote: »

i dont think i used dwelling exemption in it, was this q4?
i said the dwelling exemption wasn't available as he had gifted a house to her with option to revoke, assuming as he died before he revoked this became a disposition to her at that date, so took away the cost of the property from her CAT group releif and used the rest on the house she lived in.

i didnt know for this, the government securities were for a guy living in aus right? i just said exempt cause domiciled in aus, i had no idea.

how did everyone treat the retirement relief in q5?

How were we supposed to treat that option to revoke?

I just used the market value when he died as an inherritance.

I used the dwelling exemption on his residence as she was living there with him while he was sick, and planned to continue to live there.

CAP2 Repeats 2012

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