CAP2 Repeats 2012

rockman15

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

srm23

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

The very best of luck guys to everyone!

fmcattack

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

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

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

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

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

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

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.

national express

In Q5 I had one with no CGT as they had retirement relief, and one with a CGT liability as they didn't meet the 5 year full time director condition. That's another one I did quite quickly though.

But it was confusing because whenever it's one person they can use their husband/wifes time, but I assumed as both of them were looking for it that it couldn't be aggregated.

Nermal

national express wrote: »

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.

I thought because she had an interest in another property when he died that the dwelling exemption didn't apply.

Anyway, just think it is funny how little corporation tax actually counted for there, given the time devoted to it in class. If you know CGT/CAT/stamp duty backwards you could probably pass on that alone.

srm23

Nermal wrote: »

I thought because she had an interest in another property when he died that the dwelling exemption didn't apply.

Anyway, just think it is funny how little corporation tax actually counted for there, given the time devoted to it in class. If you know CGT/CAT/stamp duty backwards you could probably pass on that alone.

the very first two mandatory parts of the paper are CT for 35 marks

Nermal

srm23 wrote: »

the very first two mandatory parts of the paper are CT for 35 marks

True, just the impression I got from classes was that it was 50 : 50 between CT : other taxes.

srm23

national express wrote: »

In Q5 I had one with no CGT as they had retirement relief, and one with a CGT liability as they didn't meet the 5 year full time director condition. That's another one I did quite quickly though.

yeah it said him or her.
so i said he didnt qualify, she does.

then computed it by taking half the proceeds less her cost of shares multiplied by the chargeable business assets/total assets for retirement relief.

they gave the cost of the building which prob means you had to use that somehow.

this post-mortem has got me very worried now, shud prob just log off and hit the books now!

rockman15

i spotted (literally in the carpark before hand) that horses are treated as wasting assets and therefore not CGT'able.

The dwelling relief applies to her PPR before anything else. As to qualify for dwelling relief you need 3 years prior living in the house to qualify and cant have an interest in another house, which she does, being the PPR....well IMO anyway!

I imagine that question will be reviewed at boards as being not exactlly clear. Mind you Q1 was the exact same with regards to the directors loan and potential refund from revenue or the 20/80ths she would have handed over.

national express

I just checked and the not using value based against chargeable gains is wrong. I knew that note was wrong this morning I had it right in my head before reading that too.

I applied dwelling exemption to the ppr, not the investment property. Probably wrong though.

That horses thing is really annoying.

It seems like there was an awful lot of things that weren't clear cut. As if they were trying to trip you up.

I'd say I failed.

srm23

national express wrote: »

I applied dwelling exemption to the ppr, not the investment property. Probably wrong though.

That horses thing is really annoying.

yeah what I/the other lad there were saying is dwelling exemption becomes null and void once you have any other property to your name as well as your PPR, it says "jan 2010 jack bought a residential property in dublin for 400k which he gave to irene, however he excercised right to revoke..."

reading through the horse thing again it really does make it look like they're trading items. would this be liable to income tax more so than CGT? I put the wasting chatel thing myself but think im wrong.

srm23

national express wrote: »

I just checked and the not using value based against chargeable gains is wrong. I knew that note was wrong this morning I had it right in my head before reading that too.

so you could use the losses against all income in 2011/2010?
i thought it was unusual that i was coming up with zero owing for both of them!

srm23

going to get the sfma past papers out now.
anyone any predictions/tips?

myshirt

How did you guys feel about the standard of the paper today?

Was it harder? Easier? I'm not doing tax, but just in terms of the fairness of the paper..

srm23

myshirt wrote: »

How did you guys feel about the standard of the paper today?

Was it harder? Easier? I'm not doing tax, but just in terms of the fairness of the paper..

i know its easy to say but i feel i would have easily passed both of 2011s papers and ive got 45 in summer 2012 and now worried again in autumn!

think defo tougher than 2011. there was a basic theory question in the last 3 papers(incl summer 12) for 18 marks that id say most ran away with, but not today!

QueenV

What are people covering in terms of sfma?

Are ye just going through the past papers?

srm23

QueenV wrote: »

What are people covering in terms of sfma?

Are ye just going through the past papers?

yeah thats all im doing!
prob not the best idea as i feel i just know the past papers by heart and struggle to apply it to new questions :eek:

QueenV

srm23 wrote: »

yeah thats all im doing!
prob not the best idea as i feel i just know the past papers by heart and struggle to apply it to new questions :eek:

Yeah thats a bit risky.

I have a feeling we might get a variance analysis question in part b either mix and yield or planning and operating variances and I hate them!

Interest rate risk might make an appearance too.Hasn't be examined since 2010

Something on performance measurement may KPI and CSF.

srm23

QueenV wrote: »

Yeah thats a bit risky.

I have a feeling we might get a variance analysis question in part b either mix and yield or planning and operating variances and I hate them!

Interest rate risk might make an appearance too.Hasn't be examined since 2010

Something on performance measurement may KPI and CSF.

well q1 will always be performance, there was just one year i really struggled with that had a corporate restructing or something in it :eek: the rest of the q1s are usually ok.

yeah seems to be popular opinion that variance/transfer price/interest risk will possibly appear. i struggle with them so best thing i find is just do all the things you're worst at the evening before!

national express

myshirt wrote: »

How did you guys feel about the standard of the paper today?

Was it harder? Easier? I'm not doing tax, but just in terms of the fairness of the paper..

I'd say it was harder, but could be argued that it was fairer because it seemed to touch on nearly the whole syllabus. So it didn't focus too much on just one area. That's my memory of it anyway.

I definitely found it harder though. It seemed to be less theory based than the Summer. Did anyone else find that? I thought that was annoying because the summers format was a change, so then preparing for that, and it now seemed to change back.

I'd agree that it didn't seem to have enough marks going for 'basics'. In most past papers there are marks that can be picked up for knowing the theory/basic computations, but there didn't seem to be anything that didn't have some kind of complication/tricky call in it.

srm23

+1

looking at autumn 11 there
the section b was way way easier

national express

Just as an aside - Has anyone ever actually thought they did really badly in a CAP 2 exam and then passed?

From my first sitting, the two that I passed I had thought I had definitely passed, and the two that I failed I thought I had a chance of passing.

Which doesn't bode well for me thinking I did really badly today haha

EDudder

I have a question on the summer papers solution if anyone might know the answer.

For Question 2 - the finance lease adjustment. The value of the machine is €296k and the lease payments are €340k. So there's a difference of €44k over 4 years paid in advance (payments of €85k each year).

The solution has a finance charge of 21k for the year. Does anyone know how that's calculated from what's given in the question.

I was looking at a friends solution from CGS, and it calculates it using a rate of 10%. i.e. 296-85=211 *10% = 21.

But where does this 10% come from?

myshirt

EDudder wrote: »

I have a question on the summer papers solution if anyone might know the answer.

For Question 2 - the finance lease adjustment. The value of the machine is €296k and the lease payments are €340k. So there's a difference of €44k over 4 years paid in advance (payments of €85k each year).

The solution has a finance charge of 21k for the year. Does anyone know how that's calculated from what's given in the question.

I was looking at a friends solution from CGS, and it calculates it using a rate of 10%. i.e. 296-85=211 *10% = 21.

But where does this 10% come from?

I don't have the paper in front of me, but isn't the 10% given in a table?

EDudder

Ahh, thanks very much, I see how it's done now.

Do you know if using annuity tables is the preferred method of calculating finance lease charges?

I had been using the sum of digits method except for when an interest rate was given in a question.

acastudent

Do any of you have a proper solution for Question 1 2010 Autumn Exam. especially the part where they asking for evaluation of 3 offers: Close , sale and reconstruction. I can't on earth understand how they got numbers , what adjustments they did in Free cash flow and then when evaluating recycling where the numbers come from with a discount 10%???
Am I missing something obvious? Spent so much time on this question and still can't figure this out.

Please can someone help me. Have a strange feeling that it might come up t something similar tomorrow.

Thanks!

srm23

acastudent wrote: »

Do any of you have a proper solution for Question 1 2010 Autumn Exam. especially the part where they asking for evaluation of 3 offers: Close , sale and reconstruction. I can't on earth understand how they got numbers , what adjustments they did in Free cash flow and then when evaluating recycling where the numbers come from with a discount 10%???
Am I missing something obvious? Spent so much time on this question and still can't figure this out.

Please can someone help me. Have a strange feeling that it might come up t something similar tomorrow.

Thanks!

yeah ive no idea whats going on in that question either, the one thing im praying doesnt come up in mandatory parts

QueenV

Hows everyone set for tomorrow?

Any final tips anyone?

national express

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.

I think that would be quite harsh for question 1. Anyone know of a good past paper practice question on reduction of a % holding to joint control and/or associate?

Anyone else have any predictions/things they think are worth practicing?

I've just had a look over construction contracts. It's not really a tough topic, and it hasn't come up too much so might be time for it to make another appearance. But I'd imagine it would only be an optional question.

rockman15

id be inclined not to bother with a disposal. Look at a consol cash flow for Q2, simple enough. Then Ratios and IAS1 type for the other parts.

Is there such thing as a foreign associate? dont think I've seen it come up before. Just trying to figure out if the fx difference is carried as say a reduction in post aqn profit attributable to group?

srm23

rockman15 wrote: »

id be inclined not to bother with a disposal. Look at a consol cash flow for Q2, simple enough. Then Ratios and IAS1 type for the other parts.

Is there such thing as a foreign associate? dont think I've seen it come up before. Just trying to figure out if the fx difference is carried as say a reduction in post aqn profit attributable to group?

im assuming fx wont be involved in q1 after summer.
you think ratios would be on again??

The Phantom Jipper

srm23 wrote: »

im assuming fx wont be involved in q1 after summer.
you think ratios would be on again??

I think I heard somewhere that the papers are made at the same time, if that's the case I reckon it's unlikely that FX will appear again.

For ratios, are ye doing anything beyond just having a sheet with a load of ratios on it with a few generic comments on how to interpret them?

srm23

The Phantom Jipper wrote: »

I think I heard somewhere that the papers are made at the same time, if that's the case I reckon it's unlikely that FX will appear again.

For ratios, are ye doing anything beyond just having a sheet with a load of ratios on it with a few generic comments on how to interpret them?

i wouldnt say fx will be on again

national express

The Phantom Jipper wrote: »

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?

Surely that covers the vast majority of the syllabus.

Does anyone have a copy of that consol adjustments file that the lecturer emailed around during the year? I think it was an excel file.

rockman15

srm23 wrote: »

im assuming fx wont be involved in q1 after summer.
you think ratios would be on again??

A fgn associate wouldnt be difficult to ask. from what i have gathere by looking at some of the questions from Session 9 (IAS21), there isnt a translation reserve or any of that nonsense. You just retranslate goodwill and carry it to the SOFP.

Anyway. It will more than likely not be asked as it was on the Summer paper, but I'd be expecting some kind of spanner to be thrown into the works. I know Michael Tuohy had been saying its an exam on the basics, but at the end of the day you cant trust ICAI. Liable to do anything in these exams.

rockman15

national express wrote: »

Surely that covers the vast majority of the syllabus.

Does anyone have a copy of that consol adjustments file that the lecturer emailed around during the year? I think it was an excel file.

should be attached here

national express

rockman15 wrote: »

national express wrote: »

Surely that covers the vast majority of the syllabus.

Does anyone have a copy of that consol adjustments file that the lecturer emailed around during the year? I think it was an excel file.

should be attached here

Thanks a million for that!

What are people bringing in on ethics? Is there a set of notes or anything?

Looking at last years autumn paper there were 10 marks for ethics. Which would be a gift if you had the right notes. I think I always assume I'd think of the ethics answers on the day but in that case I probably would have been throwing away the easiest 10 marks on the paper.

srm23

thought sfma was tough!

srm23

only FR to go cant wait to be done

muzzyizzet

national express wrote: »

rockman15 wrote: »

national express wrote: »

Surely that covers the vast majority of the syllabus.

Does anyone have a copy of that consol adjustments file that the lecturer emailed around during the year? I think it was an excel file.

should be attached here

Thanks a million for that!

What are people bringing in on ethics? Is there a set of notes or anything?

Looking at last years autumn paper there were 10 marks for ethics. Which would be a gift if you had the right notes. I think I always assume I'd think of the ethics answers on the day but in that case I probably would have been throwing away the easiest 10 marks on the paper.

Was wondering about the ethics too. Are there any quick reference notes available anywhere?

srm23

bring in the solutions to past papers i reckon

rockman15

its a fairly hit and miss area tbf. Consider the ethical areas in the audit course; objectivity. integrity, independence as they obv are applicable to any area on the ACA exams. The key to it is you recognise that whatever this person wants you to do is wrong. Hit the various IAS's that they are looking for. In the Summer paper it was 16 and 40 and apply some logic and common sense to it. list what you can do in the standards and identfy the conflict between their approach and what the standards say.

QueenV

What are the chances of us getting a trial balance kinda of question for question one?