1. Profile photo of lwitiko says

    Chapter 5. The Framework. Current cost accounting (cca). The framework has now created a penumbral area in my understanding the linkage to physical capital maintenance which may affect my position on historical cost accounting (hca). Where is cca used as all financial performance is measured on historical basis?

    The theory says it will maintain the existing activities of an entity however does this imply that hca does not maintain the present capabilities of an entity?

  2. Profile photo of tejot says


    I am just inquisitive to know that which element does irredeemable preference shares are part of? And do they really exist (for ex. Irredeemable debentures do not exist in real life)?

    • Profile photo of MikeLittle says

      You say “irredeemable debentures don’t exist in real life” What about the “Undated Government Bonds” like 2% Treasury Stock and 3% War Loan. (The percentages may be incorrect, but the principle remains valid)

      I’ve never personally come across any Irredeemable Preference Shares in any of my dealings / dabblings / losings in the shares market but I see no reason why they shouldn’t exist.

      Now, where to classify them? That’s a good question and one I keep asking myself together with the promise to myself that I shall someday write to the P2 and F7 examiners and ask them the same question. Where preference shares are redeemable on a fixed or determinable future date, clearly they are classified as debt with “dividends” being included as a Finance Charge.

      But Irredeemable Preference Shares – well, that’s a problem. They don’t satisfy the definition of equity nor are they redeemable on some fixed or determinable future date.

      In brief ……I don’t know


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