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Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
@bulgermarina , that is to calculate the PURP, i.e. to reach at COS figure
Hello, Could you please explain me how total revenue is calculated on questions 5, 6 and 7? Many thanks in advance.
If we have 3 months pre-acquisition and 9 months post-acquisition and post-acquisition monthly revenue is on average twice the pre-acquisition monthly revenue, then revenue for each of the 3 months pre-acquisition is, say, $1,000 and revenue for each of the 9 months post-acquisition is therefore $2,000
So total revenue for the year is $3,000 + $18,000 = $21,000 of which $18,000 (or 18/21) relates to the post-acquisiiton period
Now eliminate any intra-group revenue and there’s your answer
Is that better?
That’s been cleared up now. Thank you for your prompt reply.
Hello, could you please explain me: in question 5 « Whey had managed to sell only 1/5 from 25000 purchased ». Doesn’t it mean that we need to do adjustment only for 20000 left in the group? Thank you
Please I still do not understand your explanation if how we calculated revenue in questions 5 to 7.
Thank you Sir,
for a great Explanation which make the context calculation clear.