ACCA F7 June 2006 Question 1 Hosterling

Comments

1. stusha71 says

   November 21, 2013 at 2:32 pm

   Hello.

   Can you please clarify, when we calculate split A’s profit brtween pre and post, why we ignore 3 mnths interest income (6% loan note) which relates to post acq period only?

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   • MikeLittle says

     November 21, 2013 at 3:54 pm

     I don’t have the question to hand so these are just guesses. If they don’t answer your question, post again with the details about the loan note – who issued it, in which Statement of Financial Position is it shown as an obligation, what date it was issued – in fact, anything information to do with the loan note from the question

     Was it issued by Hosterling as part of the purchase consideration – in which case, it has been issued to the former shareholders of Sanderling (?) and not to Sanderling itself.

     Was it issued by Sanderling to Hosterling in which case the interest expense in Sanderling will cancel with the interest income in Hosterling on consolidation.

     If neither of those guesses answer it, post again

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2. loopheichuen says

   November 27, 2012 at 6:43 am

   For W2, may I know where did you get the impairment of $2000? why wasn’t it $1600 instead?

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