[Anna]

Hi

When I follow the formula in chapter 24 OT course notes (which is extremely helpful by the way) I calculate the NCI like this (Sabre is acquired in the middle of the year so I divide the provided results by 2):
Revenue 2150 less COS 1300 less additional depreciation on FV adj 5 less PUP 10 less distribution 250 less administration 150 less finance costs 35 add back i/co interest on loan 20 less tax 110 which gives a PFY of 310. Then by adding OCI 90 it gives us TCI of 400.
PFY attributable to NCI: 310x 40% = 124
TCI attributable to NCI: 400x 40% = 160

How did you arrive at 380?

Thank you

[Anna]

Thank you

[Anna]

Hi, it’s BPP FR study text for exams from September 2018 till June 2019 – question at the back number 12. Thanks.

[Anna]

Thank you!

[Anna]

Hi,
This is Polestar OTQ question 268 in bpp practice and revision kit page 78. Thanks.

[Anna]

Hi,

I’m getting lost so please let me ask you some additional questions.

1.
When they ask for tax liability for a year – do they mean the current +deferred tax liability?

2.
I’m including 0.7 again because the provision for current’s year tax should be 4.5 – if there is already a debit (so an underprovision) of 0.7 (b/f) we have to book (4.5 +0,7) to get the 4.5 credit balance on the current tax account, don’t we? Please let me know if you agree with me?

3.
With regard to your entries – so the account should look like this? Please see the following:

DR 0.7 b/f
DR 4.4 (new entry)
DR 4.5 (new entry)
CR 8.4 b/f

The difference between debits and credits is indeed 1.2 but why do we book 4.5 on the left side (debit) if this is a current year provision and a provision for tax should be a credit entry as this is a liability?

And if the required deferred tax provision should be 5.6 instead of last year’s 8.4 – why do we book 4.4 on the left (debit) side if 4.4 should be the closing credit balance for deferred tax?

I just don’t get it. I quess I’m missing something but I can’t figure out what it is.

I’d be grateful for your help. Thanks.

[Anna]

Hi, I tried to use t-acc but its a nonsense what I’ve got there. That’s what I have:

1)left side:
b/f 0.7 (opening debit bal on current tax)
c/f (closing bal on current tax acc should be current year provision+under-prov from last year so 0.7+4.5) 5.2
c/f 5.6 (closing balance on DT acc should be required DT provision)

2)right side
b/f 8.4 (opening credit bal on DT acc)
4.5 (current year provision)

Difference between left and right side is 1.4.

HELP!

Please advise, thanks a lot!

[Anna]

Hi, I just see it now – I must have missed it. Thanks!

[Anna]

Hi, thank you for the clarification. I’ve one more issue I’d like to ask. According to the part of the definition of discontinued operations, a discontinued operation is „a component of the entity that is classified as held for sale and is a subsidiary acquired exclusively with a view to resale”. 3 points here:
1.If a business buys a subsidiary with a view to resell will it be classified as an asset held for sale in SFP and as a discontinued operation on SCFS and SPL?
2.Going further with conclusions – any non-current asset bought with a view to resell which meets certain criteria (trances:) should be classified as an asset held for sale and at the same time as a discontinued operation?
3.So – the asset held for sale is always a discontinued operation but discontinued operation is not always an asset held for sale? Is this statement right?

Thank you!!!

[Anna]

Hi,

So the building (or land) can be classified either under IAS16 as PPE (building/land held for rental to others) or under IAS 40 as IP (building/land held to earn rentals)?

Thank you

[Anna]

Hi,

So, would the following journal be correct?
Accum. Depr. (SFP) CT 4 250
RE (SFP) DT 550
Rev. Surpl. (SFP) DT 3850
Expense (SPL) DT 400 (I guess I’ve made a mistake in my previous question
writting 2 150 as an expense )

But actually the debits don’t equal credits in this entry, please advise.

And on the face of Statement of finanacial position would the 8 000 (= 14 000 – 4250 – 1750) be recognised as a carrying value of the asset?

Thank you!

[Anna]

Hi Chris, I bought the one that you suggested (TI-30Xa) and its perfect – simple but it has all the functions I need. Thank you very much!

[Anna]

OK. I found a solution. I misread the question – 500 is number of components in a batch and not a number of batches itself. Now everything makes sense. Thank you anyway that you are there 🙂

[Anna]

Thank you for the reply and many thanks for your lectures – they are extremely helpful 🙂

[Anna]

Hello John,

Thank you for your reply.
I watched your lectures about optimal pricing for F5 and what I found in Pricing Part 2b is the graph that you drew. It might explain why maximum revenue occurs when marginal revenue equals zero. I’m not sure if I understand it correctly – I have 3 points I’d like to ask about.
1) In dropping the price we come finally to that stage that even if we increase the quantities sold our revenue starts going down. So there is a point in which we cannot get any more marginal revenue (extra revenue)?
2) I understand that this is a marginal revenue per all sales for a given price and not a marginal reveunue per unit?
3) The last thing I wonder about is that. The whole thing about maximum revenue is something different than maximum profit? Max profit occurs when Marginal revenue = Marginal cost and Maximum revenue occurs when Marginal revenue equals 0. So if we take the example from your lecture where:
P= 50 – 0.01Q
VC = $20
Marginal revenue = 50 – 0.02Q

than the maximum profit will occur if we sell 1500 units for $35 p.u. but the maximum revenue will occur if we sell 2500 units for $25p.u.

Please let me know if my thinking is right. Thank you very much.
Anna

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