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November 18, 2015 at 1:39 pm
Mr. Mike, little confusing….
what I understood is….subsequent expenses(related to non current assets) can’t be capitalized, even if they caused to increase the useful life time of the asset,but they are unable to improve the ability of assets to generate additional revenue….
Thank in advance
November 18, 2015 at 1:55 pm
I believe this explains it!
“To capitalise costs associated with existing property, plant, and equipment, one of the following three conditions must be met:
the quality of output is enhanced in some manner. The units produced contain functionality that was not present prior to the investment.
the useful life of the asset is extended. For example, the expected service life of the asset is longer after the investment.
the capacity or productivity of the equipment increases. The units of output are higher.”
In future, please post this type of question on the Ask the Tutor forum
November 22, 2015 at 7:27 am
Thank you very much for all the advices…
October 19, 2015 at 8:04 pm
Hi Mike. I want to make it clear to you in which cases the borrowing costs calculated using weighted average interest rate will be more than the total actual finance cost incurred. It’s very simple. It happens when the cost of the project (construction etc.) is so high that when you multiply it by the percentage that we came up with we get borrowing costs that are also very high and ultimately higher than the actual finance costs incurred by the entity. I hope it’s clear now to you.
July 24, 2015 at 2:49 am
I’m not sure how the last 3 figures ( 90, 30 , 90) for the Investment column came about in Example 1. Can u please clarify?
July 24, 2015 at 9:10 am
Can you please give me a page number in the course notes where I can find the example?
July 24, 2015 at 9:13 am
Ah! It’s the borrowing cost example! Have the printed solution in front of you and read the question following through each line of the answer as you come to an event in the question.
Continually, repeatedly ask yourself “What figures will change on the occurrence of this event?” and you should be able to follow the logic of how these figures are arrived at.
If you still have a problem, post again
August 1, 2015 at 5:22 am
Unfortunately I still don’t get it.
June 2, 2015 at 8:16 am
Hi Mike, I don’t really understand the concept behind borrowing cost.Why we have borrowing cost? Got confused. Thank you
June 2, 2015 at 8:18 am
And also why we have to capitalise the borrowing cost
April 15, 2015 at 1:33 am
Hi Mike thank you for these excellent lectures !!
I found them very useful but I’m taking the Singapore variant exam do you know if it would be ok to use your lectures for the exam?
April 15, 2015 at 7:49 am
#1 if ever you want to be certain that I shall see your question and therefore be certain to get a response from me, then please post your question on the Ask the Tutor page and not in the general forum
#2 I know very little about Singapore, to my shame, but I can’t believe that there is a great deal of difference between the Singapore and the Global treatment of non-current assets
I imagine that you should be fine using these notes and lectures
April 16, 2015 at 1:59 am
Thank you sir!
February 28, 2015 at 9:11 pm
Hello, pls can I use this video for my June 2015 exams
February 28, 2015 at 9:15 pm
Yes, you can
December 6, 2014 at 12:59 pm
Sir, You are awesome. I passed my F7 only and only because of You.
Appearing for P2 on 9th 😀 I hope to ace it too 😀
December 7, 2014 at 10:22 pm
Good luck, and thanks for those kind words
December 5, 2014 at 7:47 am
if an asset which is previously revalued is impaired then what is accounting treatment of this in according to IAS 6……….I also wnat to know its impact on deffered tax calculation…..
December 5, 2014 at 3:22 pm
Write the impairment off first against the relevant amount in the revaluation reserve. If there is a surplus amount to impair, that is charged to PorL
As for deferred tax implications, the tax base will be compared with the carrying value and tax calculated on the difference
Will that do?
December 6, 2014 at 3:50 am
Thanks a lot
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