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I did it as the carried forward balance at the end of the lease table as the SOFP figure for the asset, the implicit rate as the finance cost in SOPL, and the second year carried forward balance between split current and non current liabilities
But now I am realising I didn’t depreciate the right of use asset!kavindi95 wrote:Yes, there was a part b for a leased asset and extractions to show the double entry.
If we had the same exam then it was single entity SOPLOCI and then Smithers and Burns leased asset and how to account for it
Nothing out of the ordinary for my FR, a lot on government grants and revenue. section B on revenue was a bit tough for me, section c was individual profit or loss, and ratios and analysis
Really can’t tell if I have passed, but not disastrous
I have the kit. The kaplan answer has just done a shortcut to get to the 1.8m. I think what is confusing is the work certified to date is the 1.8m which is actually the SAME as the revenue 5m x 36%
Step 1 – I did;
revenue 5m
Costs to date (1.6m)
Costs to compete (2.4m)
Profit 1mThen the stage of completion is 36%, so we then apply that to revenue, profit and costs;
Revenue 5m x 36% (1.8m the same as work certified, which is a SPL figure, which the answer in the kit has used, but not used it from the revenue x 36% figure, they used the 1.8m straight from the info which is still correct)
Profit 1m x 36% = 360k
So costs is (1.8m – 360k) 1.44mThen we can do step 4 for the financial position, which would be the
Costs to DATE – 1.6m
Plus profit at 36% 360k
Less the billed amount (which so happens to be the amount of work certified so far)
(1.8m)So the asset will be 160k
I would always use the stage of completion on all figures as taught
Hope that helps?Hey. The stage of competing is the second step, so you would apply it to revenue and profit to then get your balancing figure of cost of sales, these are the figures you would put in the financial statements so technically it applies to revenue, costs and profit. If you have an example maybe I can see what you mean?
