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- This topic has 9 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- May 25, 2016 at 4:50 pm #317089
Dear sir,
1. Firstly I want to clear a doubt about whether in the f3 syllabus there is an emphasis on calculation of debenture.( for ex: a company issue $50000 10% debentures par value $2)
2. Secondly a company has a rights issue of 1 for 5 at $3 per share. What does this “issue of 1 for 5” means.
3. Lastly could you explain what is the difference between redeemable preference shares and irredeemable preference shares. Are these 2 types of shares important for the f3 syllabus.
Thanks in advance.
May 25, 2016 at 5:44 pm #3170961. You cannot be asked in Paper F3 to calculate the value of a debenture. However you are expected to know what is meant by the market value of a debenture (or a bond or loan note, because they are different names for the same thing)
2. It means they offer 1 new share for every 5 shares already held
3. Redeemable preference share are repayable at a future date (and so are just like long term borrowings). Irredeemable preference shares are never repayable (and so are just like equity). The difference is important.
All of the above is covered in our free lectures – why are you not watching them? I am certainly not going to type them all out here 🙂
Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
August 8, 2016 at 8:44 am #331916-briefly could you explain what is a final dividend and an interim dividend
– How to record them?( SPL, SOFP or SOCI)August 8, 2016 at 9:13 am #331933An interim dividend is paid during the year, a final dividend is announced at the end of the year and usually paid in the following year.
No dividends appear in the SOPOL.
Dividends paid during the year appear in the SOCE.
Dividends that have been voted on at the end of the year and are certain, but have not yet been paid, appear in the SOCE and as a current liability in the SOFP. (But these are unlikely to occur because they will usually not have been voted on by the end of the year.)
August 13, 2016 at 5:01 pm #332968Dear sir,
You have said that Dividends that have been voted on at the end of the year and are certain, but have not yet been paid, appear in the SOCE and as a current liability in the SOFP; however in the BPP book there is a question where in the answer it says that final dividend proposed of is disclosed in the notes to the SOFPCould you please clarify?
Thanks
August 13, 2016 at 5:39 pm #332986It appears in the notes precisely because it does not appear in the SOFP and SOCE.
(Had it appeared in the financial statements there would not have been the need for the note!)
August 13, 2016 at 5:44 pm #332987when will I know that the dividend must be disclosed in the notes and should not be recorded in the SOFP and SOCE?
August 14, 2016 at 7:28 am #333052As I explained before, the final dividend does not appear in the statements unless it has been voted on and is certain. If it has not then it appears as a note because it is an event after the reporting date.
August 14, 2016 at 8:37 am #333065Thanks sir.
August 14, 2016 at 2:32 pm #333111You are welcome.
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