Forum Replies Created
- Posts
Thanks Opentuition. I really cannot believe I passed FR. I got late in the venue with trembles as I took the exam due to stress of becoming late. Was not able to balance the SOFP and not even sure of my Sections A and B. All that gave me reassurance is the FS analysis portion.
Passed with 73%! haha. Higher than my FM exam result.
Thank you Opentution. Passed FM at 60%! This is really enough for me. Thank you Lord.
I believe so as mine my Section C was about preparation of SOFP and SOPL for one company only and the other was on NCI,Ratios and interpretation on the impact of acquisition of a competitor company (Melt Co) with company name Vaughan Co.
@rjpatterson said:
Do I understand correctly, there is more than one set of questions ?Is this correct? When we talk of Receipts we are talking of selling now and buy later and having a put option in order to minimise the risk of foreign exchange transactions?
However for payment we can buy now and sell later and have a call option?
Foreign exchange transactions really gives me still confusions. Please help me Sir.
Thank you. Got it!
@P2-D2 said:
Hi,You are given the temporary differences information regarding the deferred tax balance, where it says that they are $24 million. This difference does not include the revaluation, so if we add the revaluation to the carrying value the temporary difference will increase to $28.4 million, as the tax base is not altered and it is just the carrying value that is increased.
The deferred tax position is therefore the $7.1 million (25% x $28.4 million) and there is a reduction in the deferred tax liability of $0.9 million given that it was an $8 million liability at the start of the year.
To get the correct numbers to profit or loss and other comprehensive income (and hopefully to clear up your query as to why we add back the number) then I’d use debits and credits as follows:
DR DT liability $0.9 million (reduction in deferred tax)
DR OCI $1.1 million (the impact of the revaluation goes through OCI to match the gain that has gone through OCI, so 25% x $4.4 million revaluation gain)
CR SPL $2.0 million (balancing figure)I hope this clears it up for you and apologies for the delay in getting back, it’s been a busy old week.
Thanks
Hi Sir,
Thanks. Can I ask for more clarifications?
“So therefore if the inventory has been sold then there is no FV adjustment to make, and if half has been sold then we only adjust for half of the FV adjustment as that is all that is left in the subsidiary’s accounts” — this FV adjustment pertains to? Acquisition date and post-acquisition?
Hi Tutor I can already confirm the scenario on this. Can you just confirm if I am on the right understanding?
If the inventories are all sold, the full amount of fair value increase will be reflected in the post-acquisition RE portion. If partially sold only the sold amount will be reflected under the RE (post-acquisition). The unsold portion will be added to the Inventory account. The fair value increase will be added to the Cost of Sales.
Please confirm. Thank you.
I had been looking into students concerns on Premier and found this thread.
I have 2 concerns here;
Under the investment portion, how was the 800 (consideration) computed? and why was it deducted from the investment account?
In computing for working 2 Net Assets, I find it hard to understand the ” post acquisition portion” which composed of RE 1300, depreciation 50 and PUP 400.
How was the RE computed especially the 3900 x 4/12?
Please help me. Thank you
@johnmoffat said:
(a) The question does give the market value of the bonds. It is a new issue and they are being issued for $40M – this is therefore the market value at the date of issue.(b) Yes – the nominal value is $40M. Par value means nominal value.
Sir, in computing the new WACC due to the issue of 40M bonds, with the 2 bonds ( old and new) does this always apply to separate both bonds in WACC computation? I initially added the 2 bonds having 100M in total and multiplied by the ex interest market price.
Thanks in advance.
Sir, I already understand my concern # 1. It is only 1,600 which is deducted because the whole 10m includes revenue from the normal operation and that only 600 as annual cost of servicing which is an ongoing obligation hence not yet earned as revenue. This is why 800 was recorded as current deferred revenue and another 800 as noncurrent deferred revenue.
Just help me understand better why does the 600 x 2 years not deducted from cost of sales? Can we assume in the problem that only revenue account is affected since there was no note under cost of sales in the trial balance?
I am since planning to take TX by March 2020 and ATX by June 2020 if all things went well.
Will there be differences in the syllabus or will this give me difficulty?
@Taxtutor said:
Yes the current Exam Kits (Finance Act 2018) are valid for exams up to and including March 2020 only.Does this mean that for June 2020 this kit is no longer useable?
@P2-D2 said:
Hi,Technically yes, but I think you’d be OK without it. The key thing is that although the definitions in the framework have changed, when you apply them in specific scenarios then you will still have an asset/liability and go on to recongnise that asset/liability in the same was as under the old definitions.
Thanks
Thanks Tutor. Started the FR OT lectures and loving it.
@f6ali said:
FR is the best option among those 3. Simplest reason , FR is relatively easier and has short syllabus, as compared to the other 2.FM itself is a huge syllabus and there are lots of technicalities in there which you have to master. It makes sense to go with an easier exam as you can allocate sufficient time for the difficult part.
Thanks much. Yes I will do FR. I am revising FM now and started with FR’s introduction. Doing BPP kit for FM. Planned to use Kaplan for FR. Are these okay?