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January 23, 2021 at 2:10 pm
Hi Chris, why did we took $100m for finance cost instead of $80m, as we are already calculating $20M for investment.
February 27, 2021 at 4:16 pm
I believe IAS requires you calculate the entire borrowed cost (interest cost 1.5M) of the 100M less any investment interest income on the temporary investment of those borrowings (0.2M income from the 20M). Therefore, 1.3M was capitalised.
October 10, 2020 at 6:56 am
Can anyone explain to derive at the finance cost of 500,000 and the investment income of 70,000, Why 1/12 months were used? As per the Q it states the borrowing started from March’18.
Appreciate your help.
October 12, 2020 at 8:32 pm
What will be the interest charged by bank for one month as per you ? You will get your answer.
July 19, 2020 at 4:02 am
Sir please how did u arrive at the finance cost of 500000 and the investment income of 70000.
May 21, 2020 at 9:24 pm
Hi…sir why didn’t we include the month of june when capitalizing?
June 21, 2020 at 12:18 pm
He did.. March 1 to June 31 is 4 months…
July 17, 2020 at 7:15 pm
He did capitalize the borrowing cost incurred in June. He didn’t capitalize the month of May because the construction stopped due to strike action.
February 14, 2020 at 6:04 am
What happens if you use the un rounded figure?
September 28, 2019 at 11:25 am
Dear, could you please explain how did you arrive at $70000 for investment income.
per the below calculation it must be,
20M @ 4% x 1/12 = $66,667.
Many thanks in advance.
October 7, 2019 at 12:45 am
Round it off, you will get 70,000
December 3, 2019 at 4:49 pm
How will rounding up 66,667 give you 70,000?
December 12, 2019 at 9:31 am
Rounding it off to the closest 1000$ will give us 70,000$ and that’s what Mike has done in the video.
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