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Hi Ken,
I have a question in relation to part of your response to clarify my understanding.You wrote:
Other matters: If the auditor considers it necessary to communicate a matter other than those that are presented or disclosed in the financial statements that, in the auditor’s judgment,is relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report, the auditor shall include an Other Matter paragraph in the auditor’s
report. The usual example is where there is something in the directors’ report that contradicts the FS (and the FS are correct). Note that the director’s report is no covered by an audit report so the audit opinion cannot be qualified if the information in the directors’ report is wrong.As directors’ report is other information, shouldn’t it be included in Other information paragraph? Not Other matter as above stated?
Hi Sir,
I have assumed that spot rate in 3 months is 3 month forward rate so 1/1.1559. Then i added unexpired basis of 0.0006. When spot rate at the day of transaction is not given can we assume forward rate? thank you!
Hi tutor, why tax shield benefit and subsidy benefit are discounted using annuity factor 7%, the one from loan? is it always like that? Thanks
I was watching live revision kit, part 1 and 2 but I think it was not discussed. By the way this Live revision kit is amazing thing, appreciate that, thanks a lot.
Yes I am watching lecture, and you say that they use net of 4.8% due to time constraitns, but normaly IRR would be accurate.
So I understand that it depends what is given in the scenario. If they will give required rate of return (which is risk free rate + spread), I multiply by 1-t and use it as cost of debt for WACC calculation, if not IRR calculation has to be performed, is that correct?
Hi,
how we know that Keshi wants to borrow fixed? and not variable? what is reasoning behind? Thank you.
@johnmoffat said:
I do it the same way throughout.Keshi wants to borrow fixed.
Instead they are going to borrow floating and enter into the swap.
The whole purpose is to end up borrowing fixed, but paying less than they would if they simply borrowed fixed themselves in the first place.
But now I am wondering about following.
For future cash flows they calculated forward rates, but for investment in 6 months they calculated spot rate, why spot rate not forward rate too?
Sorry just found another post of yours with following explanation!
For your second question, forward rates are always determined using interest rate parity.
Expected future spot rates are always best estimated using purchasing power parity.
Yes I did watch lectures. This what I wanted to double check, that there is no future spot rate, I was not sure about that.
So just to clarify worst case scenario is:
Amount to be paid in foreign currency/Exercise price
+premium
+under/over hedge based forward rate (if applicable)IF spot rate would be given, and currency movement would be favourable, we are not exercising option but convert on favourable spot rate. Premium is still paid obviously.
Thanks to option, max downside risk is amount of premium paid.
Thank you for explanation in advance.
Sir,
thank you for above explanation, I have still question regarding below BPP statement.The financial risk is an aspect of systematic risk and ought to be reflected in the beta factor used to evaluate a specific project.
Why financial risk is aspect of systematic risk not unsystematic risk. If financial risk is due to gearing and gearing is specific to the company?
I did watch lecture but still would like to clarify it.
Thank you in advance for your help.
Hi, thank you for your response, it make sense now. I post question there because it is related to questions above and to this thread. Just did want to create new thread for the same topic.
Hi Mike,
I am preparing to P2 but my question is related to above- dismantling costs. According to IAS 37 such cost meet criteria of provision and should be capitalised in Plant and equipment along with let’s say oil platform. That’s fine, but I don’t understand this because provisions are liabilities and we capitalise it in the assets?
I have impression that this question is stupid but prefer to ask. Thanks Mike for helping out.
Thanks, so looks like this topic is rather probable to occur. By the way http://www.OpenTuition.com – big thanks for updated lectures -IFRS 16, you are doing amazing work in supporting students.
Hi,
As we know Syllabus has been updated from Sept 1 2017 for lease IFRS, now IFRS 16 will be examinable no longer IAS 17. As I have old study text with IAS 17 I am wondering to skip this topic. Giving that it will be first sitting with new IFRS 16 chances that it will come up in exam question are small, what you think? I am running out of time, so that’s why looking for shortcuts…Thanks
Hi,
there is recommendation to upload only referenced pages of annual report instead of full report. In my report I am referring to annual reports often. I provide page number in in text citation. Having said that, do you think it would be acceptable to upload 6 financial statements (3 fiscal year of my company and three for comparator.)?? Or better is to extract from PDF only relevant pages?
ThanksEshan, highly appreciate your guidelines. I will write something about obstacles encountered.
I struggle also with first question, what I learnt from meeting with mentor. The true is that meeting were not really educational because my virtualmentor become engaged only when speaking about extending mentoring package.
Any suggestions about first SLS question? thanks in advance
What you guys write here, I am a bit lost.. How should I determine to what extent objectives are met? I would appreciate any suggestions-Thanks
1. To what extent do you think you have achieved the RAP research objectives you set?
Hi Guys,
I saw on forum many different proposals how annual report should be included in reference list, so I will ask straight, below is correct?
Ryanair Holdings, (2015). Annual Report. [online] Available at: https://investor.ryanair.com [Accessed 19 March 2017].
Thank you in advance!
Anyone have idea where to find industry average financial ratio? I want to make comparison how ryanair is doing among others..
@trephena I have a question, could you recommend me some website where I will find average ratio for aviation industry. I am analysing interest cover of ryanair ad want to make some comparison. I would appreciate your help, can’t find anything in the web.