[busybeestudying]

Just worked it out.

1.2m * 6/12 gives 600000
plus 40% gross profit on 600000 gives 240000
total revenue from contract 1000000 1m
so revenue would be adjusted for 6m-1m gives 5 m.

is that correct way of doing it.

These kind of question are not covered in my revision kit .

[busybeestudying]

Hi,

Nci ( 30% of share * 1.75)

sna@doa
plus retained earning =450000
(-) fv adjustment (850-600)/40

I think this is how it is generally done to adjust the values to nci share.

[busybeestudying]

Thanks a7mdsuliman.

I missed depreciation!!! what a silly mistake.

the installment payments are made in advance so
340000-90000 =250000

interest =25000
depreciation 340/5=68,000
second lease payment 18000 * 9/12 = 13500

gives 106500.

Which one is correct Mike.
Just checked the answer. it is 106500.

[busybeestudying]

Thanks Vapiano and Mike.
Really appreciate your explanation.

[busybeestudying]

Thanks Mike
I got it now.

[busybeestudying]

Thank you Mike.
I understand the balance b/f c/f bit now.

In spl PBT is given. profit for the year is given after deducting income tax.
PBT figure includes finance cost in it.

Now it further confuses me.
Why is it that the printed solution starts with PBT then? and still add and take away 250.
+interest paid 250(operating activities)
-interest expense (250)
Probably a printing error then.

I have not come across any question in which I have taken PBIT in the beginning of cash flows.

Thanks Mike

[busybeestudying]

Many Thanks Mike!
Yes that is correct. I just have to halve the expenditure for 6 months.

I was not aware that we have to split the borrowing cost in the ratio.

Thanks once again. I have got one more topic covered.
Have a good day.

[busybeestudying]

Thank you Mike .

[busybeestudying]

hi,

I have done a bit of share exchange on Ausre and Danute chapter 9 page 55
and I have realized that fair value of nci based on fair value of shares would be the market value of share on doa.

[busybeestudying]

Thank you for all the help Mike.
Share exchange makes more sense to me now.

(1)the question says fair value of nci investment is the fair value of the shares held by them?
what is the fair value of the shares ?£1.00 ?

(2)Chapter 8 page 53 nci is 2500 as i calculated as there are no figures for parent’s share of post acq. R.E.
Is that correct?
The total value of Greca, as suggested by solution answer , is 55500. i understand all the share exchange figures just the nci value i am trying to get to.
How do we get to that figure.

(3)I know the questin does not ask for value of goodwill.
still g/w in the same question would be
(6000+33000+14400 + value of nci 4500) =57900
fv of sna @doa is 10000+35000

57900 – 45000 – 12900 . would that be correct

Thanks you for all your effort to provide answers to my silly questions!
I think these are very basic things i should know!

[busybeestudying]

You are doing well.
Keep going.
I am 30 something and started acca after having two kids!!!!Will be sitting my F7 exam in december 2016
I think you are doing great.

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