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Thank you very much tutor.

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Hi John.
I am not sure if I was supposed to create a new post but I decided to post my question here because it relates to the same exercise.
My question relates to the calculation of the dividend yield. They divided current year’s dividend by current year’s share price. Shouldn’t it be current year’s dividend divided by last year’s share price?

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Yes John that is the case when we pay annual interest and redemption in year 5. However when we make fixed annual repayments of capital and interest the sum of the PV´s is 101.24

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Well, I’m struggling to understand why it is rare since all operating lease assets (lessor accounting) will be in the lessor’s SFP and will also be in the lessee’s, unless they are short time or small value.

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We Debit the asset by 100 only to bring it to the cost of 400, right? Assuming it is the cost of purchase.

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So I see the problem is that in their individual accounts they accounted for the investment at cost and not equity accounting as was my understanding.
Am I right?

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Excuse me Chris, I think I can Help.

@has199
I think in this case, there will be no entries in the company since the money paid and received does not affect the company. It comes out of the pocket of the new shareholders and goes to the pocket of the leaving. No money goes into the business and so nothing happens in the acquired company.

As Chris said, if the buyer is a company then there will be entries in that company´s books, and probably goodwill, since the buying company will record the cash it paid, the investment acquired and the difference will be Goodwil.

I know we are not supposed to be answering in the “Ask the Tutor”, Sorry Chris.

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Thank you very much, I am clear now.

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Can you explain why you disagree with him please?

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Excellent mind clearing thread…
I am left with 3 papers to become an affiliate and had started thinking of going the CIMA route…

Thanks for saving me the torture of more exams…

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Oooohhh… I got it. Thank you coach.

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So there is no tax saving for the taxpayer?

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That will leave me with around 2 months to practice, which is more than enough.
Thank you very much

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Dear Tutor,

I would like to know when will all lectures be available, or an estimated date so that I can assess If there will be enough time to prepare for September. Otherwise I can skip F6 to December.
What I usually do is watch the lectures together with the notes untill the end, and only then I go to the revision kit, so now I am worried if there will be enough time.

Thank you in advance.

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Thank you so much.

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Understood it.
Thank you

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OK,
Thank you Mr Mike.

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Hi Mr Mike,

In the revision interest has been ignored.
And so it was in the correction from ACCA.

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I haven´t watched the revision lectures. I wanted to try all exams from 2015 to 2010 by myself first and then will watch the revision.

I´ll check today and will let you know.

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No, interest is not mentioned anywhere in the question.

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I see it. I never thought about it that way.

Thank you Mr Mike.

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Much better. My mistake was putting the loss on the period column instead of the cumulative.

Thank you

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Oooohhh… God.. How could I?

I got it now.

Thank you so much for helping.

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I understood, but I think there is an error in the answer, since the $1,200 is being credited in the statement of profit or loss instead of the current tax account.

I realised that this exercise can be done in 2 ways, we can either credit the excess deferred tax to the current tax account or credit it to the statement of profit or loss and then credit the current account tax and debit the statement of profit or loss by the balancing amount, which is $17,100 in the first case or $18,300 in the second.

Is there a preferred way?

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100% Clear.
If we include it as at date of acquisition we must make sure it is also inluded as at accounting date.

Thank you so much for your patience, you´ll hear from me again for other exercises.

[Author]

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