June 4, 2010 at 11:25 am
Am getting confused now on calculating depreciation regarding to Non-current assets.E.g in rev kit, CHAMBER they used cost/valuation to find difference cash purchase, while PLANTER & CASINO they r using NBV. Pls help!!!June 4, 2010 at 3:49 pm
Sometimes you will not be given the cost / deprn information, so you’ll have to work on nbv basis.
I tell me students to leave the depn / tnca workings until after they have got all the other “easy” marks.
In fact, when I do a cash flow example, I too leave the depn / tnca working until the last thingJune 4, 2010 at 5:10 pm
Thaks alot werty.June 5, 2010 at 11:20 am
welcomeOctober 19, 2010 at 8:46 pm
this is a cashflow question, on why is it that Profit before tax is used sometimes, and anoter time its not used, i always thought that once i see profit before tax thats what i should start it with, need explanation please.October 20, 2010 at 9:53 am
Sometimes Steve Scott will give you a draft Income Statement which has not been completed for ( for example ) accruals, prepayments, interest charge, depreciation etc . In that situation, you will need to complete the draft Statement of Income, arrive at a draft Profit before Tax, and then add back all those non-cash expenses / incomes which you have just put through!October 20, 2010 at 3:44 pm
still not getting it, so let me give u the questions that i came upon, Rytetrend uses the operating profit instead of profit before tax and charmer uses, net profit before interest and tax by deducting gross profit from profit before tax, im confused, please explain in each cases why this figure was used, thanks
these questions are form exam kit 2008.October 21, 2010 at 2:00 am
can anyone explain me the CONSTRUCTION CONTRACTS????? the main principleOctober 23, 2010 at 6:29 am
Meleta, I don’t have an F7 revision kit in front of me – but I will have tomorrow! Let me get back to you thenOctober 23, 2010 at 9:52 am
do you by any means any video on Q2 and the guide on how to go about with it? i found opentuition approach of Q1 easy than what the big two book sellers are giving us. you perfectly fill the gap. please helpOctober 23, 2010 at 10:41 am
No, there are no audio lectures on Q2. If you read exam tips for paper F7 there’s a bit in there about Q2 attack principles. I’m not scheduled to teach an F7 revision course until the last week in November, so there will only be an audio session available right at the end of this season – and even then, it’s not certain.
Sorry I couldn’t be more helpOctober 23, 2010 at 10:56 am
In fact, Rytetrend uses profit before tax, but adjusts the figure ( in working 1 ) to take account of the wrongly expensed construction costs. After that adjustment, the figure used in the cash flow is Profit before Tax.
Charmer is not in the latest revision kit from the publisher I use. However, your question has me confused! “…by deducting gross profit from profit before tax ….” Really?
Your start point should be Profit before tax. You may need to adjust the given figure – as in Rytetrend – but it’s still profit before tax!
Are you joining the chat session tomorrow – Sunday 24th at 18.00 London time?
See you thenOctober 23, 2010 at 11:00 am
What’s your question about construction contracts?October 23, 2010 at 11:54 pm
i wanna knw abt the contract cost to b used which to take into profit calculation ??
Estimatd cost to date or percentage of work completed upto date and its cost???
clear it n thnx alot!October 25, 2010 at 7:05 pm
Contract costs to take into account are normally determined by the percentage completed. So a 60% completed contract should recognise 60% of the general costs + 100% of the period specific costs. The rule needs to change when a contract is forecast to make a loss. In that situation, the loss should be recognised in full, so the missing figure in working 1 ( see the course notes ) is the costs to be recognised. And don’t forget that working 1 is a cumulative working – so, when you have calculated revenues, costs and therefore profit to be recognised as at the end of year 2, you need to deduct the equivalent figures from year one to arrive at the figures to include in year 2 income statementOctober 25, 2010 at 7:28 pm
Hi.Let me know that is it necessary to explain the treatment of IAS with working while solving final account question in F7?October 29, 2010 at 5:00 pm
Hi – I’m really not sure what your question is! can you please re-phrase it?November 13, 2010 at 4:15 pm
Can u tell me How to interpret Dividend Yield in Ratios question.i mean when it will be good for company..when its high or low?November 13, 2010 at 4:26 pm
And plz tell me what is the difference between DIvidend Yield and Dividend Cover?
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