[alikhakar]

Actually i’m preparing for ATX only.. Can I post few questions about ATX on this forum?

[alikhakar]

Ok i’m sorry i didn’t read the answer carefully. It clearly mentions provision must be recognised. Thanks

[alikhakar]

Also.. When shareholding in a subsidiary is disposed such that control is retained, what do we do to the gain recorded in separate SOPL of parent? Do we eliminate it?

Thanks for your time.

[alikhakar]

The asset was held at Amortised cost.

[alikhakar]

In kaplan text its only given that 1M will be reduced from the total txn price and total of 19M revenue will be recognizee as the sale is made..
Can we also debit deferred expense instead of prepayments?

[alikhakar]

Q2. When there is a sale of 20M and the entity has to provide 1M to customer to make arrangements for the contract, what will be the treatment of this 1M?
I mean what do we debit as a corresonding credit of cash 1M?
Is it a contract cost that will be capitalised and amortised as the revenue is recognised ?

[alikhakar]

Re: que2, sorry i meant how will be the cash flows for operating lease be classified from the lessee’s point of view.

[alikhakar]

Q2. How are the payments for OPERATING lease classified ?

[alikhakar]

Ques2. Also i want to ask that .. Whether the profit/loss from SOOCI is also transferred to retained earning or is it transferred to some other component of equity?
TYSM.

[alikhakar]

I know that the balance in OCI can’t be transferred to SOPL until the equity investment are sold ..but I’m unsure of the treatment on the date of disposal.

[alikhakar]

But sir in the kaplan book the entry on the date of cancellation of scheme is
Dr. Equit 2700
Dr. SOPL 300
CR. Cash 3000
They have debited equity with the fair value at the date of cancellation (9) and not with the fair value at the grant date (8)
Therefore i’m getting confused for the excess amout of equity debited (300) because the original debit is only of 2400.
Thanks

[alikhakar]

Like if a company is paying its employee 2000 every month as pension, then it will reduce both assets and obligation with the same amount (2000) where is gain/loss ?

[alikhakar]

Can you guide me through the journal entries please because i’m getting confused
When we derecognise Investment property we are effectively selling it and we receive cash in exchange
But here we are not getting any considerarion in return so what will be the debit entry ?
Thanks

[alikhakar]

So tax benefit of cost*20% will be there at time and then tax payable will be 20% of cash flows

[alikhakar]

Yes tax allowable depreciation was given as – 100% of the cost ..receivable immediately.. Tax rate was 20%.

[alikhakar]

@alikhakar said:
Ques3 . in specimen exam que 27, Eq. Annual cost is asked. Ques says that taxation should be ignored. There are two discount rates given ..after tax and before tax.. But before tax rate is used … Why ??? Taxation should be ignored only means we don’t have to calculate tax benefits from maintenance cost ..but in the end ..after tax discount rate should be used no ?

If same condition is given in a big NPV ques., Should we use before tax cost of rate there also ?

[alikhakar]

Ques3 . in specimen exam que 27, Eq. Annual cost is asked. Ques says that taxation should be ignored. There are two discount rates given ..after tax and before tax.. But before tax rate is used … Why ??? Taxation should be ignored only means we don’t have to calculate tax benefits from maintenance cost ..but in the end ..after tax discount rate should be used no ?

[alikhakar]

The NPV and WACC ques are easier compared to what is there in 2014/15/16 exam papers

[alikhakar]

Ques 2.. I have checked all past exam papers from acca website… From Year 2016 backwards the question format is really weird and difficult as compared to what we have studied as 2 ques of 20 marks each in section C…. Is there any possibility that that pattern will be repeated again? Or will it be similar to 2017/18 papers ?

[alikhakar]

Ques 25 of 2016 sep/dec exam is asking which one is correct ..
Why 2nd option “in a weak form efficiency market, share price reacts to new info the day after it is announced” is also not correct ?

[alikhakar]

Also i have practiced from bpp kit of 2016-17 edition.. Is that ok ? Or the syllabus was changed ?

[alikhakar]

Thanks. Another ques i have is .what is meant by this sentence – “A Company issues low dividends and offers scrip dividends regularly and shareholders concession.” What is shareholder’s concession in this?

[alikhakar]

Reverse factoring in the context of supply chain finance..

[alikhakar]

Sir do you mean that fixed annual payment of 25707 uncludes both interest as well as primcipal amount?
Thanks

[alikhakar]

Thankyou so much opentuition team for your support. Cleard AA CBE in first attempt with 59%.

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