ACCA Financial Reporting (FR) Lectures Download ACCA FR notes

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prernaa says

i didnt get how did we arrive at the figure 7.722

prernaa says

I did the PV calculation in excel for 10 years

but that is a lengthy procedure is there any formula?

ashiksajan006 says

I dont understand how the balancing figure got

akhilvarghese says

Hi sir,

why the balancing figure a become a profit ?? if they appear in the credit side.. can you please tell me the logic behind it

so it will be loss if the balance appear in the debit side?

ps tell the accounting logic

manan66 says

Hi Chris,

In the example its $1M payment at end of the lease period that is 10 years so the PV should be 100k * 7.722 ? i am confused as to why do we calculate it this way..

i watched the lecture many times but not able to understand..

Thanks

Manan

oek1 says

Hey manan,

You should take the cash flow per year when calculating annuity.

allenchanyc says

Hi, I want to know how to compute the AF(1-10)5% = 7.722?

allenchanyc says

I found out how by googling the formula…

kavan says

(1 – (1 + r)^-n) / r

(1 – (1 + 0.05)^-10) / 0.05

samimii says

Thanks

prernaa says

i didnt get it

the formula is (1/1+0.05^10)

mulengakaunda says

please help sir in detail how to get 7.722,i am not understanding because when i try to calculate the formula (1/1+0.05^10)=1,where are you getting 7.722

aarti2407 says

Exactly! This way we get 6.14%!

william9 says

Sorry Chris, possibly a dumb question but please can you explain how you arrive at the balancing figure of 364,522 in the above example? Thanks

william9 says

please ignore. I found it in the notes (:

Gabby says

I don’t get it. Please help. How did u get the balancing figure?

borkarrahul95 says

2278265+6486257-8400000=364522

ananyajoy says

Fairvalue-leaseliability/fairvalue*profit(difference between fair value and carryingvalue).

try using this formula.i got the answer from this formula