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Hi Chris, yep, makes sense and thanks for your help once again. Merry Christmas by the way if I don’t post anything more between now and Christmas Day. Thank you.
Kind regards
James
Hi Chris
https://www.youtube.com/watch?time_continue=1411&v=oB0PhPtS3iU&feature=emb_title
Many thanks for your help in general up to this point on many different topics including this one. With regards to the tax bit at 24.25 on the above video, can you possibly explain further why we put the 1500 c/f figure on the debit side? I’m trying to get my head round why we have done this and I’m struggling a bit. I can see that in the Statement of Cash Flows section of the syllabus in the lecture video, where we do a Tax Payable T Account, the c/f figure is on the debit side so there does appear to be consistency on this with the b/f figure being shown on the credit side. Is it therefore simply the case that in this video shown above, it was a rare instance that the b/f figure was shown on the debit side on the trial balance? Apologies if this is confusing. Thanks in advance.
Kind regards
James
Hi Chris, I’m really sorry for not replying sooner on this. OK, will do. Thanks again for your feedback and help on this.
Kind regards
James
Hi Chris
I’m really sorry but I’m not understanding your 1st sentence. Can you possibly explain this further? I think I understand your 2nd sentence however. Is the annuity factor essentially discount factor? Or is there a difference? I’m really sorry about this. Thank you.
Hi Chris
OK, thanks for your help here. Apologies for the late reply.
Kind regards
James
Hi Chris
Sorry for the late reply. That helps, thanks for your help.
Kind regards
James
Hi Chris
OK, thanks for that. In that case, why didn’t we use the cost of capital in Example 1 for the value in use calculation?
On a side note, with Example 1, why didn’t we do £5000 x 5 years x the annuity factor for the value in use part? Is the value in use only based on the 1 year we are doing the financial statements for?
Thanks in advance and apologies for so many questions.
Kind regards
James
Hi Chris
Thanks for that. Yep, the cash and cash equivalents answer regarding bonds definitely makes sense. Thanks for clarifying that.
Thanks for the explanation for the retained earnings part as well. I’m trying to understand the theory by myself why the transactions are on their respective debit/credit side on the template example in the video and I’m struggling a little bit. Is there anything you can say that will help with this or is this one of the cases of just remembering the template and remembering where things go in advance? Sorry about this.
Thanks also for the revaluation reserve explanation. That definitely makes sense.
Thanks in advance.
Kind regards
Hi Chris
OK, thanks for that. I am still a bit confused about this. So closing down a operation = held for sale in every instance? Thank you.
Hi Chris
OK, thanks for that. Yep, I think I understand. Thank you.
Kind regards
James
Hi Chris
OK, thanks for that. Does that mean the tax figure on both the Profit and Loss and Statement of Financial Position represent estimate figures? Thank you.
Kind regards
James
Hi Chris
Does that mean the Tax figure on the Profit and Loss represents the accurate tax figure? Thank you.
Kind regards
James
In addition, what is the difference between Cash flow generated from operations and Net cash from operating activities and why do we split these certain aspects under different headings? Sorry, as you can tell I am struggling a bit with the Cash Flow Statement! Thank you.
Kind regards
James
Also, I’m a bit unclear about why Interest Paid and Dividends Paid fall under operating activities and not investing activities. Is it only Interest Received and Dividends Received that would fall under Investing Activities? Thank you.
Kind regards
James
Hi John
That’s great, thanks for that. In this same video towards the end around 29:15, you’ve said that petty cash and cash may be shown separately and that cash at start is the total of the two. I’m not sure what is meant by at the start? Can you possibly clarify this? Thanks in advance.
Kind regards
James
