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Will we be tested on cryptocurrencies ? Because this isn’t in the syllabus but there is a technical article on cryptocurrencies in the ACCA website.
Okay. So the $6m cash tax benefit is actually part of the pension payment ? I initially thought it was a seperate component.
The FCF only recorded $27m of payment that’s why they are removing that by adding right ?
Question:
On 30 June 20X7, Banana acquired all of the shares of Melon, an entity which operates in the biotechnology industry. Melon was only recently formed and its only asset consists of a licence to carry out research activities. Melon has no employees as research activities were outsourced to other companies. The activities are still at a very early stage and it is not clear that any definitive product would result from the activities. A management company provides personnel for Melon to supply supervisory activities and administrative functions. Banana believes that Melon does not constitutea business in accordance with IFRS 3 Business Combinations since it does not have employees nor carries out any of its own processes.
Banana intends to employ its own staff to operate Melon rather than to continue to use the services of the management company. The directors of Banana therefore believe that Melon should be treated as an asset acquisition but are uncertain as to whether the International Accounting Standards Board’s exposure draft Definition of a Business and Accounting for Previously Held Interests ED 2016/1 would revise this conclusion.
Discuss whether the directors are correct to treat Melon as a financial asset acquisition and whether the International Accounting Standards Board’s proposed amendments to the definition of a business would revise your conclusions ?
Okay sir. I can also state that since this light bulb sales only represents a small fraction of the supermarkets’ sales, the supermarkets will be less price sensitive to light bulb providers. (Its not an important product to them) So,even though they have a high power to bargain, they are more likely to bargain with food suppliers than light bulb suppliers.
Am i right sir ?
okay sir. But why is a low threat of new entrants considered a attractive industry ?
These donors contribute to these organisations with the expectations that something good will result such as lives being saved, environment being cleaned up or people being educated.
Although it is not financial, they expect a return from their investment, and will invest elsewhere if their expectations are not met.
Am i right sir ?
Why is the internal audit function important to the internal control system?
In the SBL exam, will be ask to specifically state how to embed risk in to the system or how to embed risk into the culture OR will they just ask in general how to embed risk into the organisation ?
I don’t understand why the CEO Mrs Keefer will affected. Could you explain the point in the answer key regarding Mrs Keefer.
“Directors such as Mrs Keefer are likely to experience a much higher level of investor scrutiny for some time to come and Mrs Keefer herself may not survive in her post. The apparent failure of the Global-bank board in its agency responsibilities is likely to increase the amount of intervention by investors and this will be an inconvenience for the board until such time as investor confidence is fully restored. Benefits such as bonuses may be subject to revisions at general meetings and other directors, seen as complicit in Mr Mineta’s losses, may not survive their next retirement by rotation election.”
Why would she experience a much higher level of investor scrutiny for some time to come and why she may not survive in her post ? Can you also explain the bonus part ?
