FAE September 2013

ZeroTFA wrote: »

In the different swaps just remember who is acquiring the shares:

• 2 Party swap - Existing company
• 3 Party Swap - Existing shareholders

Pg 148 is a 3 party swap and for a 3 party swap the 2 year clawback for stamp duty does not arise for the individual under s80 of the act (although this does not always seems to be applied throughout the cases).

But for a 2 party swap there is a 2 year clawback for the existing company if it disposes of the newly acquired shares i.e. Pg 133

Ok so for CGT relief and stamp duty relief - there is no clawback if you keep the 90% for at least two year

But for there to be no clawback on stamp duty at all you have to engage in 2/3 party swap

That's what I gather from page 146 - 148 at least

I was reading all this last night for revision and I have royally confused myself

myshirt wrote: »

Anyone doing Tax Elective or Audit Elective....

Anything you came across in your studies that would be ideal for core? Please share.

Also, di someone say they were looking for a FR mind map? What one? I am too lazy to read back through the thread, but I am sure someone said something earlier when I was looking at this on my phone.

Really getting to the business end of things here... so hard to keep going... it is nearly 4 o clock, and if I told you I got 2 hours of quality study done today I would be being generous; this all in the context of getting up this morning with the intention of 10 hours quality study.

Ahhhhhh!!!! :pac:

I was looking for some mindmaps or journal entry summaries for some of the main standards like ias 37, ias 8, ias 10, ias 11 and maybe the consol standards if you have anything id really appreciate it

IFRS 10, 11 and 12

myshirt wrote: »

IFRS 10, 11 and 12

Thanks

Do you have any on ifrs 3

Lol2013 wrote: »

Thanks

Do you have any on ifrs 3

They include a consideration of IFRS 3. See the bottom left of the first page where it is mentioned.

I look at this like Financial Instruments - i.e there is no point studying the topic by standard, you are best to study it in an integrated way.

Financial Instruments in some pain... IFRS 7, IFRS 9, IAS 32, IAS 39...

I think the key at this time is try think of the implications of everything you come across; try link it way beyond the direct answer; milk the boll!x out every issue you come across.

For example, take a simple prior year adjustment.
6 weeks ago, I would have said x, y, z is the adjustment required. End of.

Now we have to try say, x, y, z are the adjustments, here are the disclosure implications; also the fact this happened says this about internal controls; here are my recommendations to improve; also, do we need to fire someone; how would we fire someone; what impact would that have on the rest of the staff; how would be put in place a change programme to sort the internal controls; do we need to re-do our CT comps; what is a revenue audit; what would our shareholders think.

Go Tina Turner on every issue.

myshirt wrote: »

They include a consideration of IFRS 3. See the bottom left of the first page where it is mentioned.

I look at this like Financial Instruments - i.e there is no point studying the topic by standard, you are best to study it in an integrated way.

Financial Instruments in some pain... IFRS 7, IFRS 9, IAS 32, IAS 39...

I think the key at this time is try think of the implications of everything you come across; try link it way beyond the direct answer; milk the boll!x out every issue you come across.

For example, take a simple prior year adjustment.
6 weeks ago, I would have said x, y, z is the adjustment required. End of.

Now we have to try say, x, y, z are the adjustments, here are the disclosure implications; also the fact this happened says this about internal controls; here are my recommendations to improve; also, do we need to fire someone; how would we fire someone; what impact would that have on the rest of the staff; how would be put in place a change programme to sort the internal controls; do we need to re-do our CT comps; what is a revenue audit; what would our shareholders think.

Go Tina Turner on every issue.

That was my plan lol

Milk it. Milk, milk and milk

myshirt wrote: »

They include a consideration of IFRS 3. See the bottom left of the first page where it is mentioned.

I look at this like Financial Instruments - i.e there is no point studying the topic by standard, you are best to study it in an integrated way.

Financial Instruments in some pain... IFRS 7, IFRS 9, IAS 32, IAS 39...

I think the key at this time is try think of the implications of everything you come across; try link it way beyond the direct answer; milk the boll!x out every issue you come across.

For example, take a simple prior year adjustment.
6 weeks ago, I would have said x, y, z is the adjustment required. End of.

Now we have to try say, x, y, z are the adjustments, here are the disclosure implications; also the fact this happened says this about internal controls; here are my recommendations to improve; also, do we need to fire someone; how would we fire someone; what impact would that have on the rest of the staff; how would be put in place a change programme to sort the internal controls; do we need to re-do our CT comps; what is a revenue audit; what would our shareholders think.

Go Tina Turner on every issue.

Have u got any mind maps for the financial instruments standards?

I have a pdf somehwere on my computer of Audit mindmaps and I just can't find it! Grrr!!!!

Has anyone any tax mindmaps or audit mind maps?

Lol2013 wrote: »

Hey shane732 can you please clarify a tax issue forme please.
I have confiused myself from thinking about it too much.

ZeroTFA tried to help me but I am still confused
It's on reconstruction relief.

I'll give it a go - what's the question?

what a head melter of a day! if i could do them tomorrow i would, at least they would be over !

bit of football training now to vent my frustrations............ god help anyone who gets in my way tonight :eek:

Does anyone feel prepared?

Shane732 wrote: »

Share for share exchange - CGT clawback under Section 625 TCA 1997 (10 year clawback) and Stamp Duty clawback under Section 80 SDCA 1999 (2 year clawback).

Share for share 3 party exchange - No CGT or Stamp Duty clawback.

Share for undertaking 2 party exchange - Section 80 SDCA 1999 (2 year clawback),

There is the possibility of a 2 party exchange being hit with a Section 623 degrouping charge (i.e. the normal company leaves a group clawback).

The 2 yr clawback is that for hust stamp duty or for both stamp and cgt

degrouping charge - is that the 10 yr one?

upnorthchick wrote: »

I've lost all will!

I know.......

I wish I had started the cases earlier

so_bored.com wrote: »

Does anyone feel prepared?

Good and bad days... Really struggling to get keep the study up though.

so_bored.com wrote: »

Can anyone tell me the journal entries for leases? Ive looked at the derry cotter cases, it gives extracts from sofp rather than journal entries? Or is it ok to do this in the exam?

Leases journals:

Finance lease:

1. Recognise the asset (Might include legal costs which can be capitalized)

Dr Asset
Cr Lease liability

2. Depreciation of the asset

Dr P+L
Cr Accumulated depreciation

3. Record the interest charge (beware of being in arrears or advance)

Dr P+L
Cr Lease liability

Arrears:

Opening balance Interest % Payment Closing balance
X X (X) X

Advance:

Opening bal Payment Capital outstanding Interest Cl balance
X (X) X X X

So for advance payment the interest is less because you've paid some of the lease down. Interest is on capital outstanding rather than opening balance

4. Paying the capital and/or interest

Dr Lease liability
Cr Bank


Operating lease - You don't recognise the asset

Dr P+L - interest
Cr Lease obligation/Bank


Sale and leaseback - finance lease:

1. Sold the asset

DR Bank
Cr NBV of asset
Cr Deferred income (balancing figure) - If on Dr side then loss made

2. Recog the asset @ F.V

Dr Asset
Cr Lease obligation

3. Depreciate the lease

Dr P+L
Cr accumulated depreciation

4. Recog the deferred gain over the UEL of the asset

Dr Def income
Cr P+L

5. Record interest and payments as mentioned before


Hope that helps and doing them from memory so could've made a mistake