[QIN]

Thanks, will do.

[QIN]

Hi Mike,

I dig this out coz I can’t understand working for Q (ii) why there is cash outflow. I guess the portfolio loans are Grainger’s debt assets. 16% used to calculate interest AR. Why under both incurred cost and expected loss models there are also negative cash flows?

Thanks,
Qin

[QIN]

u r quite right, I have passed F with many many difficulties. I am so lucky to learn from your answers. Qin

[QIN]

I c, I may be too much caring, so when we were in 2012, we can estimate 2013′ situation.

Thanks,

Qin

[QIN]

So at the end of year 2012, below is right?
Dr. R.E. 0.65×1.08
Cr. NCL 0.65X1.08

But for in 2013, why there is a CL? if all assumed employees would leave in 2014?

Just want to 100% make sure I understand this bonus problem.

Thanks,
Qin

[QIN]

Just want to have a try, my time left is not too much for passing all.

[QIN]

Trying to understand – Long term liability next year – so the CL or NCL depending on the vest period, the obligation should be realized in FIVE years, so it’s really a NCL right?

[QIN]

You said, ” 1) Calculate the expected cost, 2) apply discount factors to get to present value, 3) spread the present value over the vesting period and make adjustments each year as information becomes more accurate.”

I used your calculation order and comparing to working 9, under your order 1-2-3, the cumulative bonus payable – future value is 4.42m at the end of year 5. I first discount 4.42m to current year then spread over for five years. The result is still 0.65m annually. Same as the answer sheet. But the examiner’s way is 1-3-2. I can’t understand this.

BUT, I mean NCL should be the four years (2012-2015) unvested bonus cost: 0.65×4?

Really really feel sick for this question 🙁

[QIN]

Hi Mike,

Very sorry to try to ask again about the employee bonus scheme. I really can’t understand it when I review your answer.

I tried to find the article you mentioned, but can’t find it.

Could you please give me some instruction. I am worried if I meet such Q in future
exams.

I don’t know the behind mechanism of this scheme. I really can’t understand working 8 0.65 as NCL???

Many Thanks,
Qin

[QIN]

Could you please check below amount? I am not strong for any finance cost/income 🙁

Dr AR 2Mx4%
CR Finance income 2Mx4%

Thanks,

Qin

[QIN]

Coz from the Q paper, Current assets for each individual a.c. is 995, 781 and 350. When console, just sum up all of them. Maybe I am too sensitive – cash 220 has been deducted to come to 995, right?

My brain messed up yesterday 🙁

Qin

[QIN]

I c now. Thanks…Qin

[QIN]

Hi Mike,

Please just answer my first question. I have found the answer to my second question when studying IAS 27 – Acquiring additional shares after control is obtained. GOODWILL IS NOT REMEASURED. ( not remeasured – what a powerful word 🙂
Thanks,
Qin,

[QIN]

Hi Mike,

Just one more for Traveler – the adjustment to parent’s equity:

debit NCI 228.3, credit cash 220, credit other components of equity 8.3

1. Why in Consol, the current assets are not deducted CASH 220?

2. From the answer sheet working1, the 20% additional acquisition of NCI doesn’t consider goodwill. I refer to OP lecture (p28). It says,”what we are buying is the appropriate part of the nix’s entitlement to the subs’ assets, INCLUDING GOODWILL.” in W3B, Note there is NO ADJUSTMENT TO GOODWILL.” For me, I really confused, the goodwill should be considered or not.

Thanks,
Qin

[QIN]

Hi Mike,

Just dig out this thread cos I have Q for Decany.

For item 1, $98m payable in cash from C to D to acq R, and 98m will be loaned on a long-term unsecured basis to R.

1. Why in Rant’s a.c., long-term loan is 106, it seems 12+94. Where the 94 comes from? Why not this 98m.

2 And from SUE888’s answer of Decany’s RE, 25 is div received, but the Q said C will pay 25, not yet paid. So the div receivable can also be included in RE?

Thanks,
Qin

[QIN]

Hi Mike,

Pls not forget to reply this one, you can just look at my latest post.

Many Thanks,

Qin

[QIN]

Okay, totally understand now. The transfer is btw Traveler and Captive’s former shareholder. :). Thanks.

[QIN]

Thanks for the link, but too hard for me 🙁

[QIN]

I think I understand now…Thanks..Qin

[QIN]

Hi Mike,

It takes time for me to understand your answer 🙂 I think I can understand your prior explanation now 🙂

Hope you can answer my following Qs:

From the question – Robby has treated the investment in Hail at fair value through OCI. Robby had treated the investment in Zinc at FVTPL in B/S to 31 May 2011. But there are different treatment to the FV adjustment on Hail and Zinc.

For Hail, 5 is not a realized gain, so we should remove it from OCI. Dr. OCI 5, but Cr. investment in Hail 5. This CR. 5 why not reflecting in Consol? Or Cr. 5 just shown in Robby’s individual account?

For Zinc, in answer sheet working 2, INCREASE IN F.V. TO 31 MAY 2011 FOR 1M, how it come, the Q just tells us Robby’s investment in Zinc on 31 May 2012 is 19m, 1m higher than total investment at 1 dec. 2011- 18m. I am confused in working 3 of Group R.E., increase in F.V. of equity interest- Zinc for 2m.

Thanks,
Qin

[QIN]

Thanks, Qin

[QIN]

sorry, one more

3. when disposing the revalued asset, “any revaluation surplus may be transferred directly to R.E.. The transfer to R.E. should not be made through P&L” What does it mean not be made thru P&L?

NO MORE,

Thanks,
Qin

[QIN]

I can think out now, it offset part of revaluation surplus.

BUT

1. when the prior revaluation surplus can’t completely offset subsequent impairment loss. WHY the remaining balance of impairment loss Dr. OCI first then Dr. R.E.? Why in this oder?

2. when the revaluation surplus is the reversal of prior revaluation decrease (expense), what’s the double entry? Dr. PPE XXX , Cr. R.E . XXX?

[QIN]

Hey Guys, please allow me to continue this thread cos I happen to think of the same question – Split of Goodwill impairment btw parent and NCI.

P2 examiner wrote an article called biz combinations published in April 2009. His way allocated goodwill impairment to NCI. But I remembered there is no goodwill impairment attributable to NCI.

Please clarify me, thanks.

Qin

[QIN]

yeah, maybe this paper is too far ago. I will focus on recent ones. Very nervous for this Paper.

Many Thanks,

Have a good day 🙂

Qin

[Author]

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