Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Multilateral Netting
- This topic has 7 replies, 2 voices, and was last updated 7 years ago by John Moffat.
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- August 30, 2016 at 7:11 pm #336365
Can u just explain me the standard way how do set off these net receipts and payment between countries??
Whats the first step……………………?UK USA Canada Japan
Net receipt/(payment) (39·7) 912·3 (367·2) (505·4)August 31, 2016 at 6:17 am #336447If it is a question regarding netting for receipts/payments outside the group then you first need to list separately for each currency all the payment and receipts to/from outside the group and then get the net receipt or net payment in each of the currencies.
August 31, 2016 at 7:26 am #336465I dont understand this, can u explain me again?
I mean my above figures are the final figures for netting oki?
then how do u set offfirst japan has to pay UsA is it like that?
August 31, 2016 at 3:28 pm #336557If the figures in brackets are the payments, then the UK, USA and Japan all pay the amounts listed to Canada.
The total is 912.3 and so that is the amount that Canada receives.I don’t understand what the problem is.
August 31, 2016 at 4:04 pm #336574i got this one but suppose there are two minuses from two countries and two pluses then wat do u do? Im getting confused here as to settle which country first
August 31, 2016 at 4:23 pm #336585But the total payable for those companies must equal the total receivable by the other companies!! So it doesn’t matter which one pays which one!
August 31, 2016 at 7:48 pm #336631oki got it now, but can u ask me any question regarding this to see wther I have understood ??
🙂September 1, 2016 at 6:56 am #336697Sorry – but I am answering over 100 questions a day at the moment, so I don’t have time to invent examples 🙂
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