FAE September 2012

Chalk_Farm

7upfree wrote: »

Yes bes and seed capital are still examinable.

Not sure about EIIS

CGT is 25% as our exam is based on finance act 2011. Although 30% came in in December 2011 it's part if finance act 2012

I'm not 100% on the interest charge but I think it is gone for both.

So that mean interest relief can be ignored?

supernova84

If you took out the loan before December 2010 you can still claim the relief but on a restricted basis 2011-75% relief, 2012-50% relief, 2013-25% relief, 2014-Nil.

No relief available on loans after December 2010.

haribo12

In the moch 2012 exam sim 2 has anyone an idea where the 4266 is coming from its wrecking my head

froggatt2011

Has anyone who couldn't pick up their mock scripts got anything back yet? I suppose it will take the Institute ages to post them out. I am itching to find out where I went wrong.

Think I'll give them another bash this week and see if I've improved any.

Still finding it hard to study in the evenings ... damn the elevation programme. It sucks. Wish I was on a contract with decent study leave.

But hey ho. Back to it!

faer2203

Loosing the will to keep studying!!

Siobhang4

haribo12 wrote: »

In the moch 2012 exam sim 2 has anyone an idea where the 4266 is coming from its wrecking my head

Think you have to look at total value of new cabins per SOFP 1680 less the 100 new STO12 Cabins 400 giving 1280/300 (400 cabins less 100 allocated above) = 4266

Did you get mail re tax summary?

Chalk_Farm

Can someone explain the logic in solution Tekron for the revised projected surplus for 2013 - I know it probably makes perfect sense but I'm finding it difficult to get my head around?

Chalk_Farm

Chalk_Farm wrote: »

Can someone explain the logic in solution Tekron for the revised projected surplus for 2013 - I know it probably makes perfect sense but I'm finding it difficult to get my head around?

Have worked it out - think thats enough study for me, brain fried :pac:

EveT

reo49 wrote: »

Few Tax questions:

1. Are BES and seed capital still examinable? think so because you could have someone who took it out a few years ago but id say unlikely enough to come up in detail

2. Surely they won't ask us anything on EIIS as they barely covered it and only provided 2 pages of notes on it? hmm would have an idea of it, maybe in relation to high earners restriction

3. I assume we are supposed to use the new CGT rate of 30% in the exam? nope fairly sure 25%???

4. Interest Charge Relief - I know this is gone as of 7 December 2010, but is this the case for both an individual and a Company?

hmmm def gone for an individual I think, think a company can still claim it, can someone clarify?

faer2203

EveT wrote: »

hmmm def gone for an individual I think, think a company can still claim it, can someone clarify?

For the interest following on kpmg website

Individuals
The Bill provides for a restriction in relief to individuals who have borrowed monies to purchase an interest in a trading company or its holding company, or to provide a loan to the trading company. Relief will be reduced gradually over three years with 75% relief applying in 2011, reducing to 50% and 25% respectively for 2012 and 2013. No relief will apply from 2014.

No relief is available for new loans made after 7 December 2010.

Companies
Interest relief on intra-group borrowings Interest relief will not be available to a company either as a charge or as a trading deduction in respect of interest on intra-group loans made on or after 21 January 2011 which are used to finance the purchase of assets (other than trading stock and qualifying intangible assets) from another group company. This restriction will not apply where a trade is acquired which was not within the charge to Irish corporation tax prior to acquisition. In that case, interest relief is available for each accounting period up to the amount of income generated by those assets in that period.
A company which is claiming interest as a charge on borrowings which are being used by another group company must have a material interest (>5%) in that company and both companies must have a common director.

Where interest as a charge is claimed by a company in respect of borrowings which are being used by a company not within the charge to Irish corporation tax to generate interest income, then the interest relief available is restricted by the amount of interest income generated in that other company which is not repatriated to Ireland.

Interest as a charge relating to money borrowed for the purposes of a trade will now only be available for relief at an effective 12.5% rate either by the company itself or by way of group relief.

EveT

faer2203 wrote: »

For the interest following on kpmg website

Individuals
The Bill provides for a restriction in relief to individuals who have borrowed monies to purchase an interest in a trading company or its holding company, or to provide a loan to the trading company. Relief will be reduced gradually over three years with 75% relief applying in 2011, reducing to 50% and 25% respectively for 2012 and 2013. No relief will apply from 2014.

No relief is available for new loans made after 7 December 2010.

Companies
Interest relief on intra-group borrowings Interest relief will not be available to a company either as a charge or as a trading deduction in respect of interest on intra-group loans made on or after 21 January 2011 which are used to finance the purchase of assets (other than trading stock and qualifying intangible assets) from another group company. This restriction will not apply where a trade is acquired which was not within the charge to Irish corporation tax prior to acquisition. In that case, interest relief is available for each accounting period up to the amount of income generated by those assets in that period.
A company which is claiming interest as a charge on borrowings which are being used by another group company must have a material interest (>5%) in that company and both companies must have a common director.

Where interest as a charge is claimed by a company in respect of borrowings which are being used by a company not within the charge to Irish corporation tax to generate interest income, then the interest relief available is restricted by the amount of interest income generated in that other company which is not repatriated to Ireland.

Interest as a charge relating to money borrowed for the purposes of a trade will now only be available for relief at an effective 12.5% rate either by the company itself or by way of group relief.

thank you

supernova84

Anybody have the solution to Marlborough House Ltd?

ferike1

Guys in the run up to exams you should remember to take physical exercise to help relieve stress.

Check my blog http://whitecollarwarrior.wordpress.com/about/

And facebook page https://www.facebook.com/WhiteCollarWarrior?ref=hl

For workout and nutrition ideas!

Jame Gumb

supernova84 wrote: »

Anybody have the solution to Marlborough House Ltd?

Is Marlborough House an older case?

Re interest relief, as others have pointed out, Section 248 relief for individuals gone for loans taken out after 8 December 2010. Relief for loans that existed at that time available for 75% of interest for 2011, 50% for 2012, 25% for 2013 and goneski thereafter.

Interest relief (S.247) still there but restrictions in place for assets purchased from connected companies or funds lent intra group. Can't see the connected party restriction coming up at core TBH so it's "still there" for standard exam scenario purposes (company borrows money from bank and buys another company).

supernova84

Jame Gumb wrote: »

Is Marlborough House an older case?

It's a new one I think, the actual case is on here somewhere.

luco123

reo49 wrote: »

Few Tax questions:

1. Are BES and seed capital still examinable?

2. Surely they won't ask us anything on EIIS as they barely covered it and only provided 2 pages of notes on it?

3. I assume we are supposed to use the new CGT rate of 30% in the exam?

4. Interest Charge Relief - I know this is gone as of 7 December 2010, but is this the case for both an individual and a Company?

3.use the 25% rate.
4. gone for individual who took out loan after 7 Dec 2010. still available for co.

can someone post up the tax elective papers and solutions which have been updated for 2011 rates. thanks.

notanocelot

froggatt2011 wrote: »

Has anyone who couldn't pick up their mock scripts got anything back yet? I suppose it will take the Institute ages to post them out. I am itching to find out where I went wrong.

You can still pick them up today (Tuesday) or tomorrow during working hours if you call in advance. I got a friend of mine to pick mine up. Call Kelda Lewis in student services if you need help.

froggatt2011

notanocelot wrote: »

froggatt2011 wrote: »

Has anyone who couldn't pick up their mock scripts got anything back yet? I suppose it will take the Institute ages to post them out. I am itching to find out where I went wrong.

You can still pick them up today (Tuesday) or tomorrow during working hours if you call in advance. I got a friend of mine to pick mine up. Call Kelda Lewis in student services if you need help.

I'm in Belfast and in work so no way I'll make that. Thanks anyhoo

MPBC123

In the tidy homes case does anyone know why the projected direct materials & overheads for 2011 are based on the 2008 % and not the 2010 or 2009?

MPBC123

MPBC123 wrote: »

In the tidy homes case does anyone know why the projected direct materials & overheads for 2011 are based on the 2008 % and not the 2010 or 2009?

I see in the solution direct materials are to be pared back to 2008 levels - really how are we supposed to know to do that??

elaine61527

Hi,

Just wondering if anyone has / knows where to find the Rush Plc Case for APM Elective?

Thanks in advance for your help!

supernova84

Park4Square is a bit of a mental case, hard to get the head around

ferike1

Yeah the ethics indicator was funny too. God forbid a client ever helps me with my keys!

whytenc

Has anyone done the runways case?
Bit confused on the first indicator of corporate governance and the format of it being in a briefing paper even though I thought the paper requested a letter to the bank.....presumably its just another example of a poor case....
Also when preparing a report of briefing paper do you caveat it as in 'dont show outside Company' etc and do you bother putting exec summary as shown in some of the cases? Seems bit unnecessary I think?

Jame Gumb

supernova84 wrote: »

Jame Gumb wrote: »

Is Marlborough House an older case?

It's a new one I think, the actual case is on here somewhere.

Cheers - Where did it come from???

supernova84

FAE revision course. It doesn't look like a standout case from my brief look at it.

7upfree

Username2011 wrote: »

Hey guys.


Has anyone done the MID WEST OIL case?
Very frustrated with the choice of 3 indicators when it seemed there were 6/7 in the case!

• The case discusses whether they should introduce Smart Cards instead of traditional vouchers - this is not an indicator even though the BofD are divided on it.
• It also discusses their information management system and performance measures both of which are shocking, yet there is no indicator for discussing the risks and recommendations of such a system
• The company is made up of 4 pretty autonomous divisions and the BofD were wondering what the tax implications of splitting the company up into four new companies would be as half the BoD said there would be no tax impact while the other half thought there might be. But once again, the ICAI did not deem this to be an indicator of where advice was required.

There is no consistency in the cases solutions which is making it very frustrating.
Did anyone else think the same?

Where do you see that the brothers want to set up 4 new companies. I don't see that being mentioned? They ask about the tax issues if they were to receive a revenue audit?

It does seem a bit strange however that they have put in so much detail about the smart card and their stone age information system and not being present on the internet and these are not considered as indicators.

I seem to keep finding more indicators in the case study than there is in the answer.

ferike1

Bay trading was a disaster. Thanks for the warning in advance

Those shareholder warranties, never saw that in the notes before!

7upfree

Started doing questions this week not going well at all.

Did one on Monday completely missed half it now I find myself picking out the indicators then looking at the answers.

I seem to be finding way more indicators than the answer gives. Starting to panic now as the exams are so close and feel like I know absolutely nothing.

supernova84

7upfree wrote: »

Started doing questions this week not going well at all.

Did one on Monday completely missed half it now I find myself picking out the indicators then looking at the answers.

I seem to be finding way more indicators than the answer gives. Starting to panic now as the exams are so close and feel like I know absolutely nothing.

.

Hang in there 7upfree. The standard in a lot of the sample cases is pretty high and the indications aren't very clear. It will be good practice for the main exam where the emphasis is more on time management as the indicators tend to be more clear cut.