[Damien]

12 marks for the criticism of the audit report

[Damien]

Hi again,

It is a past exam paper in my college not acca, however we get exemption from acca F9 if exam is passed. The course is taught using ACCA F9 syllabus (more or less).
The question arises on foot of a WACC calculation question requiring you to calculate WACC using book valuation and then market valuation.
The question above is part 3 (5 mark)
Part 1 =book value WACC
Part 2= market value WACC

Thank you for your swift reply.

Regards,
Damien

[Damien]

Its from a past 4th year exam paper in my college.
But dont these type of questions constantly only tell you about only a part of a transaction for example in PP&E it might say there was additions of 10, for example, but during the year after doing the comp you realise there was also another addition.
They wreck my head.
Anyways finally got the Cashflow to balance. Roll on the exam tomorrow. Fingers crossed.

Thanks a million.
Damien.

[Damien]

Hi again,
The figures in the question were in millions so are as follows;

Intangible asset: o/b =1180,000,000 and c/b= 960,000,000
“Included in Intangibles above Non-Current Assets is capitalised development expenditure. Amortisation charge of this development was correctly amortised as per IAS 38 during year at €1.75 million.”
So i did it as follows 1180-960-1.75=218.25 (Additional amort)
SO Added? this back to PBIT. Is this right?

[Damien]

Also Legal Provision O/B = 336 C/B = 65

Is this deducted from PBIT as 336-65=271?

[Damien]

Back again to you Mike.

Heres the Q.
Intangible Assets: O/B = 1180 & C/B=960

Included in Intangibles above Non-Current Assets is capitalised development expenditure. Amortisation charge of this development was correctly amortised as per IAS 38 during year at €1.75 million.

Answer?
O/B 1180
C/B (960)
Amort(1.75)
—————–
Disposal / Additional amort = 218.25??

Is this added back to PBIT as 1.75+218.25=220?

Thanks.

[Damien]

Your welcome.

I have used this website since last year when i was doing the F8 module, which was of great assistance. I have most of my class told as well as the 3rd years.

Thanks again.

[Damien]

Yes i get what you are saying.
Thanks for clarifying that for me.

By the way this is an amazing website and thank you very much for the help.
Am in my final year in college which has an F7 module. I intend on doing ACCA exams post graduation so will be availing of this website again.

Regards,
Damien.

[Damien]

Hi again,
Is the following correct?

1. Intangible asset: Development expenditure(SOFP) C/B =1,250 O/B= 817
So all i do is O/B: 817+18(Amort)=835-1250(C/B) = 415=Addition?

Therefore do i use this 415 as a payment to acquire new intangibles in the cash flow and add back the 18 to PBIT?

2. “The investments item in the Statement of Financial Position includes an entry for Short Term Investments (less than 3 months) of €6,000,000”

Investment (Current Asset): O/B=24 & C/B=114
Bank (Current Asset): O/B = 62 CB= 5

Investments Comp:
24-6-114=96 which is an addition? so in Investing section of cashflow its a payment to acquire a short term investment?

Bank Comp:
62+6-5=(63): is this the Net Cash Movement?

Thanks for your time and help.

[Damien]

Is there a lecture video on Decision Trees? Cant seem to find one..

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