[crisdinayanyan]

Thank you so much 🙂

[crisdinayanyan]

Hi Sir thank you so much for your speed reply. Really appreciated.

May I know for finance asset designated at amortised cost and Fvtpl, should I still use the original effective rate based on initial b/f carrying amount to calculate the interest income even through there was a change in fv?

[crisdinayanyan]

The answer given is quite simple. It just says if the 2 loans were carried out at fair value, both the initial loan and new loan would have the same value, to be carried at $45. May I know why? Is it because the single payment to be paid in 2009 is similar?

If the loan is not repayable in a single payment, will the result change differently?

So sorry for the trouble caused. Your help is really appreciated.

[crisdinayanyan]

Thank you so much sir. Really appreciated:)

[crisdinayanyan]

Sorry I typed wrongly. It should be SFP instead of SPL

[crisdinayanyan]

Thank you sir for your fast reply. I am still not sure how to record the transaction correctly in SPL. As far as I know we need to:

Dr bank 50
Dr lease receivable 47+2.8
Cr ppe 40

May I ask how to make them balanced?

Thank you very much

[crisdinayanyan]

77% with first attempt 🙂

[crisdinayanyan]

Thanks! Thanks a lot!

[crisdinayanyan]

sorry, i typed wrongly. It should be : according to the answer given by BPP revision kits, it doesn’t have any effect on TA ratio.

[crisdinayanyan]

I agree with you. Thank you so much

[crisdinayanyan]

Hi John Thanks a lot. The question is from Kaplan exam kit, question 216 🙂

[crisdinayanyan]

oic, Thanks a lot John

[crisdinayanyan]

I made such a big mistake….really thanks a lot.

[crisdinayanyan]

ya, i copied it correctly. It is from a text book i found online. Now i want to throw it away!

Thank you very much for your reply.

[crisdinayanyan]

Hi John may I ask you another question regarding to the depreciation?

A non-current asset was disposed of for $2200 during the last accounting year. It had been purchased exactly three years earlier for $5000, with an expected residual value of $500, and had been depreciated on the reducing balance basis, at 20% per annum.

The profit or loss on disposal was ?

I thought on the 1st year, it depreciated (5000-500)*20%=900
on the 2nd year, it depreciated (4500-900)*20%=720
on the 3rd year, depreciated (4500-900-720)*20%=576

The carrying amount after 3 year was 4500-900-720-576=2304
therefore, there was loss ($104) on disposal.

But this is wrong. pls correct me…thanks;)

[crisdinayanyan]

oh… then i think the answer provided on the text book is wrong!

I really spent a lot of time on this question. thank you so much

[crisdinayanyan]

thank you so much for your detailed explanation 🙂 I will definitely go and watch the video

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