Test 3-CIS-F7-Kaplan book

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This topic contains 10 replies, has 3 voices, and was last updated by Avatar of MikeLittle MikeLittle 1 year, 2 months ago.

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  • March 3, 2012 at 9:02 am #51699
    Avatar of dragon76
    dragon76
    Participant

    Hi ALL,

    Have you reviewed this test yet, if yes, pls. let me know why the answer ignore the income credit $60K at the acquisition date and $5K of goodwill impairment ??

    Thanks

    March 3, 2012 at 1:56 pm #95085
    Avatar of Vipin
    Vipin
    Participant

    I would like to help u. but be specific, which test u r talking about.
    chpter 3 is CIS.
    are u talking abt test ur undersatnding question?

    or fixed test 3 at the end of the book?

    March 5, 2012 at 7:04 am #95086
    Avatar of dragon76
    dragon76
    Participant

    Thanks Vipin, I’d like to ask about test of understanding 3 of Kaplan book in Chapter Consolidated of Income Statement, pls. help me on this issue

    March 6, 2012 at 12:02 pm #95087
    Avatar of Vipin
    Vipin
    Participant

    5k is of fair value adj, that is adjusted in asset, which is listed in SFP not in IS. depreciation of fair value adj is added to cost of sales.

    March 6, 2012 at 12:58 pm #95088
    Avatar of MikeLittle
    MikeLittle
    Keymaster

    Hi dragon

    I’ve got the Kaplan text in front of me, opened at page 84 on Test Your Understanding 3, Pepper and Salt. However, I cannot see neither a) where is the 60k income credit to which you refer, nor b) where in the question is the 5k goodwill impairment which you mention

    So, until you let me know which question you refer to, I can’t help.

    Sorry :-(

    March 8, 2012 at 8:27 am #95089
    Avatar of dragon76
    dragon76
    Participant

    mikeLittle,

    I ‘, asking about Test 3 between Flowers and Smith in Chapter 6 Consolidated Income Statement of Kaplan, the model answer ignore the Credit Income $60K at acquisition date, pls. let me know why ?

    March 8, 2012 at 8:57 pm #95090
    Avatar of MikeLittle
    MikeLittle
    Keymaster

    ok, Dragon, I have the Kaplan text in front of me – chapter 6 is “Introduction to published accounts”

    You’re going to have to tell me which material you’re looking at – study text, revision kit, course notes?

    If I can’t find the question, I can’t help you :-(

    March 9, 2012 at 2:59 am #95091
    Avatar of dragon76
    dragon76
    Participant

    It’s study text. pls. find it out, I got it in study book of Kaplan published 2008, every year they changes the structure of book content, pls. look it up in Chapter of IS Consolidated

    March 9, 2012 at 1:46 pm #95092
    Avatar of MikeLittle
    MikeLittle
    Keymaster

    Ah! In the 2012 study text, this is Test Your Understanding 1 …. and, it’s obviously changed quite dramatically since 2008.

    #1) there is no mention of $60,000 anywhere in the question, and

    #2) the $5,000 goodwill impairment is not ignore, it is shown within the Consolidaed Income Statement within Operating Expenses as directed by the question

    The moral? Stop using material which is 4 yours out of date!

    March 12, 2012 at 9:21 am #95093
    Avatar of dragon76
    dragon76
    Participant

    60K is income of Subsidiary Company at acquisition date,Thank for your reply, But it ‘s the best book of F7 I’ve had to learning, I think It’s still Ok for Exam :)

    March 12, 2012 at 11:03 am #95094
    Avatar of MikeLittle
    MikeLittle
    Keymaster

    As you wish. I’m not convinced that you are correct, but you appear to be happy enough, so good luck

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