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  1. Hi,

    I am missing 22M to balance it out. I guess (as others mentioned) this comes from the issue of new shares 20 + 2 on House. This should be dealth with under Equity and not OCE, right? If so how do we come to a total OCE of 25.4M?

    Thanks,
    Georgios

    • Ill reply to myself as I found the solution on the past paper answers

      Issue new shares for purchase of house
      Dr. Inv in House 42
      Cr. Ordinary Sh Cap -20
      Cr. OCE -22

  2. This is very helpful.

    Please can we have a revision lecture for a P/L question? This is more difficult so it would be great to have to talk through a past exam question!!

  4. I guess he’s just missed it, like he failed to mention the figure of the investment in House at the initial data of Kutchen’s SFP. besides, I would have never ever guessed what figure Kutchen recorded in the OCE as a gain on sale of Niche, because there wasn’t any, it was a loss. and why for god’s sake does the impairment of the building located overseas include foreign exchange loss in itself?? but at least both figures go to the retained earnings, so there was no overall mistake, but there was a mistake in classification.

  5. apart from the mistake of the lecturer with the ordinary share capital of $20m, I wonder where the examiner put the other components of equity of $22m from the issue of shares of $20m and the contingent consideration of $2m.

  14. Thanks for the lecture.

    I have a question though, the official answer has the share capital as 63 (43+20 for the purchase of House I presume) but you have placed it as only 43. Which would be correct?

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