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I allocated the dividend percentage to the dividends to the Nci , calculated post acquisition change accounted for the depreciation and got a loss on disposal . I wasn’t sure what the 1 m loss had to do with.
This paper wasn’t bad but I spent some time trying to get the excel spreadsheet to work
Mine was property with a useful life of 20. I was asked to compute the gain on disposal .
Was was left as an associate and not a step disposal I got a bargain purchase of 32 though. Had to adjust for a 2 m liability which a provision was made for
Land? Mine was properly and something about a report which came in after period end . Anyone else got something like that ?
Mine was was a disposal not even a step disposal . Mine was only left with 15% I was starting to panic
I added back the losses to balance the cash flow. It would have been similar to when they say that it would have been utilised against future cash flows. so I used the same concept as if it was like that and when it came to calculating the cash flow, added it back just like how we would add back for the tax allowable depreciation.
Hey Thank you. My IRR was oddly high as well.
Like it was insanely highly. I used 20% and I was still getting a fairly positive number.
How did you guys arrive at this figure?
What did you do for the year 1 and year 2 tax losses? Did you add back the tax credit on the cash flows?
Did you add it back as a tax credit so that there was a nil effect since it really wasnt a cash flow?
Based on the answers I believe that is what is causing my NPV to be 3,013 million versus this 1170 that everyone is doing. since I belive it was 2,230 in year 1 and a smaller amount in year 2. That times the Cost of Capital of 12% would have made the difference
yes i wAS wondering WHY my NPV was so large. I as wondering if i did something wrong mine as 13 mil but i only realised the scrap value at the end so my end figure would be wrong
But it depends on the ratios you choose. If it was opm or gpm then skipping it won’t make a diff.
Mine also included the AT so I’m the one who should have included it
Last time I checked acca only penalizes once. Were your calcs based on continuing ops?
The question said to calculate based on continuing operations only.they gave you the net assets of the discontinued ops which was 9mil
@alanjp101 said:
For the contract asset you had to recognize revenue and cost of sale based on the amount of cost incurred to date over the total experience expected cost. The difference being the profit would then be added to the 5000 for contract asset in the sofpIt should not have been added from what I recall
