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I understand the way you have shown in the lectures. The problem is as I do Bpp kit or past exams when they calculate the planning price variance by using the actual usage * (actual price – standard price) since they provide no infor about the revised usage. My question is if we have information about revised usage then when we calculate planning variance, we should use the revised usage instead of actual usage. Is that correct?
Thank you so much. I did watch your free lectures but apparently I have forgotten this part since I watched it long times ago. I will watch the lectures again 🙂
Thank you so much for the answer. I have been confused about the value of capital employed that I should use. Now everything is clear. 🙂
Oh nvm I have realized that what I did was to calculate the total material variance and not material price particularly 🙂 Everything is fine now 🙂
Hi,
And what about contingent assets? Do we include the contingent assets in subsidiary’s net assets for goodwill calculation?
ThanksI think that the transaction cost will be recorded in the value of the investment on 1/1/20X0. As on 31/12/20X0, the share price is 6$ per share so the value of investment on SOFP will be 240000$. The gain will go in OCI as I think the Financial asset is treated under FVOCI
Thank you very much for the answer. I have understood as the rise of COGS as the fair value is higher than cost and results in the reduction in RE
Sorry for my typo regarding the initial impairment and I agree that it should be 3. My question is that after the first year, the recoverable amount is 7.5 so that means I can reverse part of the impairments and record the PPE at 7.5 is that right?
Thank you so much
