ACCA F7 June 2010 Question 1 Picant

Comments

1. Swati says

   August 1, 2014 at 7:57 am

   Dear Sir,

   Referring to :F7 June 2010 Question 1 Picant:

   While calculating the cons. ret earning, we have taken increase in FV of property (i.e 2000) and its depreciation. But why have we not taken software decrease (i.e -500) ? What’s the reason?

   regards,
   Swati.

   Log in to Reply

   • MikeLittle says

     August 1, 2014 at 8:53 am

     Again, from memory, the software was written off completely. The property fair value adjustment could have been shown in the same way that Kaplan and BPP show it – they do not include the fair value adjustment in the “bottom” section of working W3. They merely show the post-acquisition movement so, in the example you quote, the two big tuition companies would show just the depreciation post acquisition on the fair value adjustment.

     I prefer to show $2,000 less associated depreciation in the top section of the working and then $2,000 fair value adjustment as at date of acquisition in the bottom section

     Each to their own!

     Log in to Reply

2. olghi1986 says

   May 19, 2013 at 10:22 pm

   Thank you!

   Log in to Reply

3. mohammedfarsan says

   November 30, 2012 at 12:07 pm

   Thanks alot…

   Log in to Reply