Mint Shares indexation

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
Can anyone remember what they did with the indexation for the first group of shares? There didn't seem to be one indexation that covered the whole period.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Mint Shares indexation

    i indx up to 04/85 as this was the end of the 82-85 pool, then i indx up to 1995 as there was another movement. The i indx up to 04/98, the end of the FA pool.

    It got me to start with as i thought there should have been an indx for 82-95 but then i remembered the FA pool rules for share in 82-85.

    does that make sence?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Mint Shares indexation

    I used two indexation factors but included them both in the total cost, but when i did it it did'nt come out as a whole number, it was .50 at the endand then whan i indexed again it was something like .99 at the end, which makes me think i've done it worng!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Mint Shares indexation

    What rule for 82-85 pool? Haven't been told about any rule or in fact anything of how to treat purchases that occured before April 85. Couldn't find anything in Osborne book about shares pre April 85 in my post-exam postmortem panic. In the exam I assumed we had to use two indexations before the second purchase and then one indexation afterwards.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Mint Shares indexation

    I go to college with GillG and we have never been told about any indextion rules pre 1985 pool, nor is it in the Osborne Book. I decided to think laterally and felt we must use the earlier indexation, as there must have been some form of allowance pre 1985. Let's hope we are right!

    Would be very interested to hear from any tutors about this.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Mint Shares indexation

    i also used both the indexation factors, as in previous papers that is what the answer shows.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Mint Shares indexation

    Yeah you indexed up twice.

    Regards

    Dean

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