Comments

  1. Profile photo of Swati says

    Dear Sir,

    I have a small confusion about when to start charging the depreciation? Its a June 2013 Dipifr question:

    The question says:
    Construction work commenced on 1 November 2012. The factory was completed on 31 May 2013 and production began on 1 August 2013. The overall useful life of the factory building was estimated at 40 years from the date of completion. Year ends on 30 Sept 2013.
    And the Total depreciable amount came out to be $ 10,000

    In the solutions, they have charged it for 4 months ( I think its 1st June to 30 Sept 2013)

    But shouldn’t it be charged when the ‘production’ has begun i.e from 1st August 2013 (means 2 months?). Doesnt it mean it was ready for use from 1st August 2013?

    Regards,
    Swati

    • Profile photo of MikeLittle says

      I presume the cost of the factory was $1,200,000 – you never said!

      From the information you have given I can understand why you would wish to depreciate for only 2 months. That COULD be acceptable if you were to charge 2 months out of a remaining useful life of 39 years 10 months

      The factory is complete as at the end of May and from that time it has “a useful life of 40 years”. The question does NOT say that it has “a useful productive life of 40 years”

      Nasty trick :-(

      • Profile photo of Swati says

        Ahh okay.. i understood.. Thanks!

        And by writing ‘Total depreciable amount came out to be $ 10,000′, i meant that the total factory cost worked out to be 10,000 on which depreciation was charged in the solutions.. Well, i understood how they got this ‘10,000’ :)

        So, thanks once again!

  2. Profile photo of uzo2011 says

    Dear sir,
    I’m finding it difficult to watch F7 lectures on my tablet, it is displaying Error loading skin: Error loading file for the past 2 days. I’ve watched open tuition lectures from my tablet in the past. So I don’t know what’s happen now. Can you please help me out

    Thanks,
    Uzo

    • Profile photo of MikeLittle says

      Hi Tarek – I’m sure that this is explained in the lecture! However ……. “amount invoiced” is the amount which the builder has received together with those amounts which the builder has invoiced but has not yet received (ie still included in “receivables””

      “Amounts due from customers” in W2 is another way of saying “Unbilled work in progress” whereas “Amounts due from customers” in W3 is another way of describing “Accounts receivable”

      The two amounts described as “Amounts due from customers” are therefore different in nature – the first is work-in-progress / stock / inventory whilst the second is receivables

      OK?

      • avatar says

        yes ok thanks mr mikle

        please mr mikle i want you advise me what i use in my rivision kit in f7 that meet our method in opentuition kaplan or bpp ?

    • Profile photo of MikeLittle says

      In any of those … and why have you missed off questions 4 and 5?

      Any of those topics could be involved in any of the five questions

      Sorry, but there’s no short cut to passing these exams – just ask some of the students who finished their exam session last Wednesday

  3. avatar says

    hi,
    I have a school exam on the day of the ACCA exam, if i decide not to write the exam, would ACCA keep a spot for the june 2014 due to the fact that i paid for a sit in this december exam?

Leave a Reply