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ACCA FR Chapter 5 Non-current assets (IAS23) Questions


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Comments

  1. hanzlahnisar says

    February 23, 2021 at 8:01 am

    For Q2
    Why is the £2.4M interest capitalised over 10 months? I did £1.4M for 10 months and £1M for 6 months minus 4 months of £1M income, when it was in use?

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  2. utletsholathebe says

    May 16, 2020 at 9:04 am

    Question 3:
    8%*300mil=24mil
    9%*450mil=40.5mil
    64.5mil÷750mil=8.6%
    8.6%of 60mil for 8/12months=3 440 000
    8.6%of 20mil for 2/12months=286 667
    Total of the 2 is 3,726,667.00

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    • utletsholathebe says

      May 16, 2020 at 9:28 am

      So when answering question 1 one must not round off the interest rate of 10.2307692 to 10.23 as it gives a totally different answer?

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  3. farhaanm says

    February 5, 2020 at 6:11 pm

    I got question 1 and 3 wrong. I followed the method of calculating weighed average as demonstrated by the tutor. For question 1 I got weighted average 9.77% and add 9.77%*9/12*6 M and 9.77%*5/12*2 M. For question 3 I got weighted average 11.6% and add 8/12*60M*11.6% and 2/12*20M*11.6%. Please help me out. Thx

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  4. taqi1 says

    September 12, 2019 at 8:10 am

    Dear Sir,
    in Q#5-NCA-MCQs of BPP Kit, the Interest income is calculated from when Loan was drawn down(from 1 May(6 month)). im now totally confused. shuold it be calculated from 1 May or 1 July/ could you plz clear it for me?
    thanks

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    • John Moffat says

      September 12, 2019 at 3:17 pm

      Please ask this sort of question in the FR Ask the Tutor Forum and not as a comment on a lecture.

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  5. alastairk says

    November 14, 2018 at 6:13 am

    Hi,
    They were tricky. I only got Q3 correct. Can anyone give some guidance on the other 3?
    Thanks

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  6. hedge2004 says

    September 4, 2018 at 2:40 pm

    In Q2 it’s not very clear when the funds are invested to receive investment income. I think it is open to interpretation, as the money could be invested when the funds are drawn down, or once the construction work commences.

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    • P2-D2 says

      September 4, 2018 at 8:21 pm

      Hi,

      The interest received on the invested funds can only be deducted when the interest expense is being capitalised, so we can only do this for the period from 30 June 2014 to 1 November 2014 (i.e. 4 months). In this instance it then doesn’t matter whether the money is invested immediately when drawn down or when construction commences, we can only net off the amounts from when construction commences.

      Hope this clears it up.

      Thanks

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      • rebescosco says

        December 6, 2019 at 12:10 pm

        Yes it is clear sir, thank you so much.

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