[Accountaholic]

Passed. An affiliate now!!!

[Accountaholic]

Thank you all for your answers. This discussion is quite helpful.

[Accountaholic]

@anukis said:
Is it a problem if i forgot to tick the number of questions i have attempted or if i ticked questions 1,2,3 when in fact i attempted all 5 questions. will this cause any difference in marking etc….

Damn…I did the same thing.

[Accountaholic]

What was the answer to question 3 – hedging?

[Accountaholic]

What was the answer to the first MCQ? 3.71 or 3.50?
I also found that even by process of elimination I ended up with 2 options…

What was the treatment for interest of 150k in NPV question?
I am not happy with this exam 🙁 🙁 🙁

[Accountaholic]

Thank you.

[Accountaholic]

I think I am still missing your explanation about balancing charge. How did we get that £4000? Is it that scrap value?

Sorry for not getting this 🙁

Thanks for your help.

[Accountaholic]

Sir, in your explanation (post: November 1, 2014 at 7:03 pm) for question 2, why did you not deduct risk free rate from market premium of 8%?

[Accountaholic]

Sir, sorry but could you explain answer to 1st question? Why is the interest of $8 not taken post tax i.e $5.2?
And why is the rate of 12% used straight away unlike what we do to find out the cost of irredeemable debt ?
Thanks

[Accountaholic]

How do I copy and paste the questions I got wrong? I can’t do 🙁

[Accountaholic]

Apologies. I have now read the instructions before the exams 🙂

So we don’t get the explanation of incorrect answers 🙁

It was a really good practice and has helped me understand which topics of syllabus I need to focus more in revision.

Thanks 🙂

[Accountaholic]

Thank you for your help. I have checked a couple of times and what I have copied is absolutely right and it is exactly how mentioned in the question. 🙂

But it is clear now.
Thanks 🙂

[Accountaholic]

Thank you sir.

[Accountaholic]

Thank you Sir John. Much appreciated.

[Accountaholic]

Okay…Thanks 🙂

Hope I am not too late for preparations though!

[Accountaholic]

Great. Thanks 🙂

[Accountaholic]

Of course you teach F9 Sir John! 🙂 🙂

I do apologise…I have no idea how I confused myself!!

Although I did not copy the question word to word, what I have mentioned is as per the question.

I will have to re-do the question and see if I still read the same way!

Thank you for your help Sir John 🙂

Regards

[Accountaholic]

81

[Accountaholic]

Looks like the Server is already crashed! 😀 😀 😀

[Accountaholic]

That’s exactly what I calculated – 14300. But see below the extract from answer:

(Where it says Net Assets 18000 i.e. shares 6000 + RE 12000)

Thanks a million for your answers.

(iii) Goodwill in Southstar
$’000 $’000
Investment at cost
Immediate cash consideration (6,000 x 2 (i.e. shares of 50 cents) x 75% x $1·50) 13,500
Contingent consideration 1,800
Non-controlling interest (12,000 x 25% x $1·20) 3,600 –––––––
18,900
Net assets (equity) of Southstar at 30 September 2013 18,000
Add back: post-acquisition losses (4,600 x 6/12) 2,300
Fair value adjustment for property 2,000 ––––––– Net assets at date of acquisition (22,300)
––––––– Bargain purchase/negative goodwill – credited directly to profit or loss (3,400)

[Accountaholic]

Thank you.

PS: I am amazed by the fact that you reply so quickly! Thank you kindly for all your help 🙂
It seems that you are also awake with the students to answer their queries asap 🙂 🙂
Much appreciated!

[Accountaholic]

Thank you for this explanation. I did follow what you are trying to say here. I also tried the question from OT Course notes and I was fine with that. However, please see below solution for above question.

What I don’t understand in this answer is that why do we have to deduct the instalment paid on 1.10.x4 and take that amount to calculate NCL and CL?

Also, why depreciation is calculated over 10 years rather than 6.5 years?

I do not follow their explanation. Can you please explain?

Thank you sir.

*******************************
SOLUTION:

Working
Interest on finance lease
$
Cash price 61,570
Instalment 1 October 20X3 (3,000)
58,570
Interest October – December 20X3 (2%) 1,171
Balance 31 December 20X3 59,741
Instalment 1 January 20X4 (3,000)
56,741
Interest January – March 20X4 (2%) 1,135
Balance 31 March 20X4 57,876
Instalment 1 April 20X4 (3,000)
54,876
Interest April – June 20X4 (2%) 1,098
Balance 30 June 20X4 55,974
Instalment 1 July 20X4 (3,000)
52,974
Interest July – September 20X4 (2%) 1,059
Balance 30 September 20X4 54,033
Instalment 1 October 20X4 (3,000)
51,033
*As there is a secondary lease period for which only a nominal rental is payable we can assume that Evans will keep
the rocket booster for the full 10 years of its useful life. If this were not the case it would be depreciated over the 6.5
years of the lease term.

[Accountaholic]

Thank you.

[Accountaholic]

Sure. Thank you.

In case if I need any help on certain topics, where should I post them?

[Accountaholic]

Thank you MikeLittle 🙂

[Author]

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