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It cost $12,000 and has a 20 year life. So annual depreciation is $12,000 / 20 = $600
Accumulated depreciation at 1 April is $3,600, so expired life is $3,600 / $600 = 6 years
Revaluation takes place on 1 October, and that’s 6 months into the seventh year
As at 1 April, it has been depreciated for 6 years. Before revaluation there is a further 6 months’ depreciation to charge (so $300 for that half year) and, as at 1 October it has been depreciated for 6 and a half years – thus leaving a remaining useful life of thirteen and a half years over which the revalued amount should be depreciated
And that works out to be $10,800 / 13.5 = $800 for each year and, for the second half year from 1 October 20X4 to the year end that would be $400
That gives a total of $300 + $400 = $700 for the year ended 31 March 20X5 and a figure for the SoFP of $10,800 – $400 = $10,400
Does that make sense – I hope it helps
In answer to your last post, no!
Because £2.5 million dollars worth of 50 cent shares means that there are 5 million shares of 50 cents each = $2.5 million
Sir, I believe that Anygary was asking about the detail of matters that standards require to be disclosed rather than simply the title and number of the Standards.
I have the same problem in trying to memorise the detail of the required disclosures. Are we expected to know these or are they essentially a matter of common sense?
I used to be the same! Until someone from OpenTuition pointed out to me … how will your result be affected by your current mental anguish?
It won’t! Your worrying achieves nothing. That’s wrong, of course. It achieves hours of mental pain, lack of focus, unnecessary distractions, potential adverse affects at work.
WHAT IS THE POINT of this worry? Nothing will change. Your result will not change – that’s all water under the bridge.
Chill! Relax! Anything else is a waste of your time and focus.
I also learned very quickly that it is impossible to predict your results in ACCA exams. Personally I was totally convinced that I had failed my Advanced Taxation exam. Not just convinced. Oh no! I absolutely KNEW that I had failed it. But I hadn’t 🙂
The question is … So what if you have failed it? Would the Earth stop spinning? Would people think less of you? Would you be known as a FAILURE? Are your job prospects ruined? How many people in the future will ask ‘Did you pass your PM exam first time?’
It’s not a life or death situation! When you qualify, do you think anyone – anyone at all – will ask about your exam journey?
No one will. No one!
So, move on, get your result in 20 days’ time. If you’ve passed, well done. FM next
But, if you’ve not satisfied the ACCA with your attempt, then attempt it again in December. Become a master of stoicism and STOP WORRYING!
Hope that helps 🙂
Chris, am I not right that, if a Share Premium Account exists, one of the few allowable uses of the Share Premium Account is to provide for the premium payable on the redemption of shares and / or debentures.
Is that right?
So, was my post wrong? Contingent liability, no double entry. Just a note in financial statements?
Contingent consideration, paid to subsidiary’s former shareholders, not to the subsidiary itself?
Surely, if it’s only contingent, there is no accounting double entry – or am I wrong? Isn’t it just a note in the financial statements
And wouldn’t contingent consideration be paid to the former shareholders of the now-sold subsidiary and not to the subsidiary itself?
Surely b is incorrect because the early delivery pre-empts Barbara being OBLIGED to take 100 bouquets
OK – now give me the references or the sources of these two statements so that a) I can check that you have copied them correctly and b) so that I can read them in the original context
OK?
If we’re talking about the value of the raw material inventory, then the closing inventory valuation is at $5 unless even that purchase price has now been overtaken by a supplier’s price reduction so the retail value of that raw material inventory would be at the new reduced price
If the inventory is finished / processed goods, then cost of those processed goods is $5 + $11 = $16 but realisable value is only $10 per the contract so the value of the closing inventory of processed goods will be $10
It’s possible that your figure of $11 includes the purchase cost of $5 in which case the value of the closing inventory of finished goods would be the lower of nrv of $10 and costs incurred in bringing the inventory to its current location and condition ie $5 + $6 = $11
So, again the value of the closing inventory of finished goods would be $10
I don’t have the question to hand so this is a guess! Is it maybe because the figure in the trial balance is in the credit column? In which case it will be included in current liabilities because it’s an overdraft
ALL exams can be done ‘on your own’ and none of them need a tutor
It’s just that the help from a tutor makes learning that much easier
Anna, OpenTuition do not set exams and, in fact, have nothing to do directly with ACCA, BPP, Kaplan nor any other organisation
If you wish to take a mock law exam, you will need to purchase one from any of those three organisations that I have mentioned – unless you can persuade them to let you have one at no cost
There are no links between the Law exam and the tax exam
If you have no plans at all to work in the UK, then Global would seem to be a sensible choice
Many others before you have passed with just OpenTuition notes and lectures combined with (very, very) extensive use of a revision kit
It’s $57 millithe on because Destiny, in the opening post, has told us that the share nominal value is 50 cents
Here’s an extract from the internet about the question Promulgate:
‘Promulgate’s trial balance as at 31 December 2015 showed credit amounts of £500,000,000 and $80,000,000 against the $1 equity shares and the share premium account respectively’
And that’s why my answer is double the apparent printed solution … because (following Destiny’s misleading post) I have calculated the number of shares to be double the actual number
Destiny, you ask ‘Sorry can you please tell me how do you come to $400 million figure?’
The question tells us that the value of share capital AFTER the rights issue is $500 million and that the rights issue was on the basis of 1 for 4
Therefore, there must have been $400 million worth of shares BEFORE the rights issue.
Then a 1 for 4 would involve the issue of a further $400 * 1/4 value of shares and so, AFTER the rights issue there would now be $500 million
Just keep your FR knowledge ticking over – open your revision kit at random pages and answer (say 3) questions from each randomly opened page
Where you find yourself struggling with a topic, check out the course notes on that topic and then try those troublesome questions again
See if P2D2 has a recorded lecture on that topic and watch that through again
But once through a study text and twice through the revision kit should give you enough to gain a comfortable pass
