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Question 19.7 in Bpp revision kit the information regarding non -current asset is :
Statment of financial position
20×7-44282
20×6-26574
Additional information
1- Depreciation expenses of the Year was 4658
2- Assets with carrying amount of 1974 were disposed of at profit of 720can someone explain to me how payments to acquire tangible non- current asset in preparing cash flow statement is 24340 ?
please help !
The carrying value at the start of the year was 26,574.
During the year this will reduce by the depreciation of 4,658 and by the carrying value of the assets sold of 1,974.
Therefore, had there been no acquisitions using the year, the balance at the end of the year would have been $19,942.
The actual balance at the end of the year was $44,282, and therefore there must have been acquisitions of 44,282 – 19,942 = $24,340.
I work through a very similar example in my free lectures on Statements of Cash Flows. (The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.)
how do i know the information is current amount not the original cost .. ? do i have to use depreciation to figure out the purchase if it was the original cost ?
thank you so much sir i really appreciate you generous help
i watched all you lectures regard FA they help me a lothave a good day ^^
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