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will the same apply for accounting standards too?
I mean if in a question we have to describe the correct treatment, we just have to mention the application ?Hi Sir, in the same question, how did we find the right of use of the asset as proportion of assets previous carrying amount that relates to the rights retained? can you please explain the logic?
Sir, in the above mentioned question a(iii) the staff relocation cost $.05 M which is wrongly capitalised.
Are we supposed to correct the wrong entry?
Because I think the correct entry had to be
Dr P/L
Cr Relocation expenseBut the entry given in the solution I s
Dr P/L
Cr PPEIs this because we are correcting the wrong entry of capitalising the expense?
Hi I’m so sorry for the late reply. Please drop in your email id and we’ll start studying.
It is mentioned in the question it takes one year time for approval and manufacturing and sales will commence only after that one year. so is it wrong to assume the initial one year needed for the approval as year 0?
)Sir, in this question part (c), can we use gearing ratio = debt / equity rather that the suggested answer in which gearing ratio is calculated as debt/(debt + equity)?
Thankyou Sir
I’ve something really silly to ask as well.
When do we use Gearing %= Non current Liabilities / Equity?Yes, I was checking the answer in the Revision Kit.
I was confused with the dividend valuation model steps.
Thankyou John.