• Skip to primary navigation
  • Skip to main content
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
    • BT
    • MA
    • FA
    • LW
    • PM
    • TX-UK
    • FR
    • AA
    • FM
    • SBL
    • SBR
    • AAA
    • AFM
    • APM
    • ATX
    • Dates
    • What is ACCA

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

F7 Chapter 17 Questions

VIVA

Reader Interactions

Comments

  1. wankumbu1990 says

    October 29, 2019 at 12:19 am

    why is it capitalised over the period of 10 months when construction began in june

    Log in to Reply
    • wankumbu1990 says

      October 29, 2019 at 12:20 am

      i mean question 2

      Log in to Reply
  2. adeelak123 says

    August 21, 2018 at 9:23 pm

    can anyone help me with question 4 because it find it pretty weird because in the start it said like 43m have not yet capitilized in accordance with ias then why is that a answer when its not okay to capitilize it according to ias ???

    Log in to Reply
    • adeelak123 says

      August 21, 2018 at 9:25 pm

      capitalized *

      Log in to Reply
  3. maxacca says

    February 27, 2018 at 9:47 am

    Could you maybe explain why in question 4 the 43m should be capitalised?

    Log in to Reply
    • adeelak123 says

      August 21, 2018 at 9:26 pm

      i have no idea….. im also confused xD

      Log in to Reply
      • MikeLittle says

        August 22, 2018 at 6:04 am

        The line in the question “$43 million have not yet been capitalised in accordance with accounting standards” is capable of either of two diametrically opposite interpretations

        1) the $43 million is not capitalised and that is the correct treatment in accordance with accounting standards

        2) the $43 million has not been capitalised but it should have been capitalised in accordance with accounting standards

        It’s a matter of where you put the emphasis of the phrase ‘in accordance with accounting standards’

  4. Izzuddin says

    September 4, 2017 at 3:34 pm

    Hi,

    For question 1, why multiply 9/12??? why not 4/12 since the 6m is borrowed from April – July?

    Cheers.

    Log in to Reply
    • MikeLittle says

      September 4, 2017 at 5:59 pm

      Did Tripoli repay the $6 million at the end of July?

      Log in to Reply
      • hurtloker67 says

        November 3, 2017 at 7:51 pm

        Can you explain in Q1 how compute 15/39 & 24/39 ?

      • MikeLittle says

        August 22, 2018 at 6:05 am

        How much money has Tripoli borrowed? $39 million

        Of that amount $15 million relates to one loan on agreed terms and $24 million relates to a second loan on different agreed terms

        Ok now?

  5. navu123 says

    January 24, 2017 at 9:52 am

    Hi Sir,

    Regarding Q2, how should we calculate the months for investment income? Should we start from the loan drawn (1 may) or from the work commenced?

    Log in to Reply
    • MikeLittle says

      January 24, 2017 at 10:37 am

      From the date that we start to capitalise the borrowing costs – so that would be 1 July until 1 November = 4 months

      Log in to Reply
  6. chiranjeev says

    June 2, 2016 at 8:14 pm

    Problem in Question 1 and Question 3…
    Please assist in that.

    Log in to Reply
    • MikeLittle says

      June 3, 2016 at 5:35 am

      Tell me the problem, then I can explain it

      Log in to Reply
      • chiranjeev says

        June 3, 2016 at 9:59 am

        Question 1) Why 6m & 2m is multiplied by 15/39 and 24/39? and with the interest rates as well?
        Question 3) Its same as above..
        My question is why secured loans are being multiplied with the extra borrowings?

  7. linda97 says

    February 28, 2016 at 3:41 pm

    help me with q1 the calculations of the borrowing costs to be reconigsed

    Log in to Reply
    • Son says

      March 2, 2016 at 3:20 am

      I think you should read more at F7 text in page 52
      First, we need to caculate the capitalisation rate = weighted average rate = 9%x15/39 + 11%x24/39 = 10,23%
      Borrowing costs = (6mx9/12 + 2mx5/12)x10,23% = $545,641

      Log in to Reply
  8. Mudassir says

    February 19, 2016 at 7:34 pm

    please sir can you tell me how to do question 1 and 3 ?
    i will be thankful

    Log in to Reply
    • yudixsh says

      May 17, 2016 at 11:06 am

      for question 3
      first u calculate weighted average cost of borrowings {(300/300+450) * 8%} + {(450/300+450) *9%} =8.6%
      then u put the date the loan was taken;
      01 Mar 2014- 31 Oct 2014= 8 months
      01 Sept 2014- 31 Oct 2014= 1 month

      then,
      60m * 8.6% * 8/12= 3.44
      20m * 8.6% * 1/12= 0.143

      Total = 3.583

      Log in to Reply
      • MikeLittle says

        May 17, 2016 at 4:17 pm

        That does it!

  9. bola says

    February 15, 2016 at 11:22 am

    Please can someone help me out in Q2. I solved thus:
    1.4mx8%x10/12=93,333
    1m x8%x 6/12=40,000

    Less
    1m x 6% x 4/12

    I know something must be wrong but I can’t indicate it exactly

    Log in to Reply
    • MikeLittle says

      February 15, 2016 at 4:34 pm

      Try this:

      $2.4m @ 8% x 10/12 160,000
      $1.0m @ 6% x 4/12 ( 20,000)

      Answer $140,000

      And problems, post them on Ask ACCA Tutor – that way I’ll be sure to see them

      Log in to Reply
      • hemabobbili says

        January 14, 2017 at 6:00 am

        Sir,

        Out of 2.4m, 1m is invested only in November. So aren’t we suppose to provide interest for 6 months for 1m and 10 months for 1.4m?

      • MikeLittle says

        January 14, 2017 at 7:34 am

        I’ve just answered this on the Ask ACCA Tutor forum for F7

  10. alaasamy says

    February 4, 2016 at 7:13 am

    V Good , thanks

    Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in