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SBR

Joint arrangements Example - ACCA Strategic Business Reporting (SBR) lectures

VIVA Subject Guide
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11 Comments

  1. Adam
    the ppe value in SFP is(6-6/10 = 5.4)
    and in SPL its 0.6 ... i dont get it .how this 0.6 is come from .show me your working please.
  2. Martyna
    in SPL it is just the depreciation :-)
  3. mukul
    Hello,

    Is there any need to refer study text after referring free videos and open tuition notes

    Thanks
  4. wgk
    The question asks, "Show how Lyon would account for the above ...."

    Can this be demonstrated by detailing the Dr's and Cr's or is there a need to show the extracts in the FS?

    Dr PPE 6
    Cr Bank 6

    Dr Dep. Costs 0.6
    Cr PPE 0.6

    Dr Op. Costs 0.6
    Cr Payables 0.6

    Dr Receivables 12
    Cr Revenue 12

    Dr Dir Costs 8.8
    Cr Payables 8.8
  5. wasif
    In Group SFP,
    PPE - 5400
    Receivable - 12000
    Total assets - 17400

    Profits(R.E) - 2000
    Payables - 9400
    Total equity & liabilities - 11,400

    There will be a difference in group SFP of 6000/-, which I believe is of investment in PPE.
    should we show that 6000 as Bank O.D and tally the SPF.

    Is my understanding correct?
  6. wasif
    Or I think we should treat it as share capital - 6000/-

    Because it's mentioned in question "accounted for it's share of the construction cost".

    Help me in understanding this?

    Thank you.
  7. P2-D2Tutor
    Hi,

    You cannot draw up an SFP as you've done above as you do not have a cash balance that has been adjusted following the initial entry to account for the share of the PPE. You need to process the journals and it all will still balance.

    Thanks
  8. andrew
    hi sir i thought the 600 deprction is supposed to be apportioned based on share holding of 40%
  9. P2-D2Tutor
    Hi,

    The value of the PPE has already been apportioned and so the depreciation calculated will therefore be apportioned too.

    Thanks
  10. lakshmi
    hi sir, i dint quite get the 600 payables added with 8800
  11. huang
    operating cost 1500*40%=600

    And that 600 has been paid after the year-end

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