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charlichickxx

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Active 6 years ago
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Viewing 6 posts - 1 through 6 (of 6 total)
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  • September 4, 2018 at 12:17 pm #471276
    mysterycharlichickxx
    Member
    • Topics: 2
    • Replies: 8
    • ☆

    You’re correct with this answer but I am a little confused as to why this wouldn’t come under the valuation of its carrying amount as with assets held for sale?

    Held for sale valuation = lower of carrying amount & fair value less costs

    Carrying amount $26m
    Fair value less costs $36.8m

    The text agrees with you response being $36.8m however it’s not clear to me why it’s not ‘held for sale’ if they decided to sell on 1 Apr 20X4?

    WOuld really appreciate anoyone who can give me clarity 🙂

    @riskyguy said:
    14 As at 30 September 2013 Dune’s property in its statement of financial position was:
    Property at cost (useful life 15 years) $45 million
    Accumulated depreciation $6 million

    On 1 April 2014, Dune decided to sell the property. The property is being marketed by a property agent at a price of $42 million, which was considered a reasonably achievable price at that date. The expected costs to sell have been agreed at $1 million. Recent market transactions suggest that actual selling prices achieved for this type of property
    in the current market conditions are 10% less than the price at which they are marketed.

    At 30 September 2014 the property has not been sold.
    At what amount should the property be reported in Dune’s statement of financial position as at 30 September
    2014?

    A $36 million
    B $37·5 million
    C $36·8 million
    D $42 million

    Option C ( could be wrong though )

    Dep to 1 April 2014= 45000/15=3000×6/12=1500
    45000 – 3000 acc dep – 1500 = 40500 CV

    37800 = 42000*0.90
    (1000) = cost to sell
    36800

    August 26, 2018 at 8:35 am #469436
    mysterycharlichickxx
    Member
    • Topics: 2
    • Replies: 8
    • ☆

    Thank you utsavit!

    Yes, that makes perfect sense now… I didn’t think to remove the discontinued operations from the previous year however, thinking now, it makes sense for comparibility!

    And again, I can now see why it would be 400 and totally agree that it would be the interest from the loan notes… because the loan notes are relating to Deadwood.

    Thank you!

    August 26, 2018 at 12:11 am #469435
    mysterycharlichickxx
    Member
    • Topics: 2
    • Replies: 8
    • ☆

    In case the question is slightly different… I am taking it from the BPP P&R kit from last year for a CBE style question relating to numbers 279 – 283 in the kit. I’ve pasted the question below just fro reference….

    Pinto – CBE Style OTQ case
    The following scenario relates to questions 279–283.
    Pinto is a publicly listed company. The following financial statements of Pinto are available:
    STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 31 MARCH 20X8
    (extract)
    $’000
    Profit before tax 440
    Income tax expense (160)
    Profit for the year 280
    Other comprehensive income
    Gains on property revaluation 100
    Total comprehensive income 380

    STATEMENTS OF FINANCIAL POSITION (extracts) AS AT
    31 March 20X8 31 March 20X7
    $’000 $’000 $’000 $’000
    Non-current assets (note (i))
    Property, plant and equipment 2,880 1,860
    Investment property 420 400
    3,300 2,260
    Equity and liabilities
    Equity shares of 20 cents each (note (iii)) 1,000 600
    Share premium 600 Nil
    Revaluation surplus 150 50
    Retained earnings 1,440 2,190 1,310 1,360
    3,190 1,960
    Non-current liabilities
    6% loan notes nil 400
    Deferred tax 50 50 30 430
    Current liabilities
    Trade payables 1,410 1,050
    Bank overdraft nil 120
    Warranty provision 200 100
    Current tax payable 150 1,760 nil 1,270
    Total equity and liabilities 5,000 3,660

    The following supporting information is available:

    (i) An item of plant with a carrying amount of $240,000 was sold at a loss of $90,000 during the year. Depreciation of $280,000 was charged (to cost of sales) for property, plant and equipment in the year ended 31 March 20X8. Pinto uses the fair value model in IAS 40 Investment property. There were no purchases or sales of investment property during the year.

    (ii) A dividend of 3 cents per share was paid on 1 January 20X8.

    (iii) $60,000 was included in Pinto’s profit before tax for the year ended 31 March 20X8 in respect of income and gains on investment property.

    You are preparing a statement of cash flows for Pinto for the year to 31 March 20X8.

    August 26, 2018 at 12:01 am #469434
    mysterycharlichickxx
    Member
    • Topics: 2
    • Replies: 8
    • ☆

    Hello Mike,

    Sorry to bring up an old question for you however, I am a little lost as to where the B/F asset of 50 current tax comes from. There is nothing relating to overpaid tax or tax receivable in the assets of the SOFP?

    The current tax in liabilities shows nil for X7 and 150 for X8.
    How does this relate to the ‘B/F current tax (asset) 50’ given in the answer please?

    The deferred tax shows 30 for X7 and 50 for X8.

    Once told that there is a 50 asset for the c/f current tax, i fully understand and can calculate the answer but I’m really struggling to see how this 50 is shown in the P&L or SOFP as I can’t see it 🙁

    Thank you!

    October 30, 2017 at 2:24 am #413689
    mysterycharlichickxx
    Member
    • Topics: 2
    • Replies: 8
    • ☆

    For those of us who failed (I was at 45%) and are re-sitting in December, the ACCA are doing free revision lectures!

    https://www.accaglobal.com/pk/en/student/support-for-students-in-pakistan/prepare-to-pass-acca-study-school.html

    It says sign up by 18th October but I just entered my info and it seems to have given me the link… hoping that it works for the lecture starting in 6 hours!

    Good luck!

    May 30, 2011 at 7:29 am #80455
    mysterycharlichickxx
    Member
    • Topics: 2
    • Replies: 8
    • ☆

    Awesome! did yu just use the study guides then? is the rest actually worth paying out for?

    Thank you so much for replying!! xx 🙂

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