[francihco]

Hi Chris, question is not asking for it but just out of practice and double checking the end result, why am I not getting ´nil¨ on the C/F on year 5? I applied 7% as redemption premium but I guess that´s just not right, is it?

b/f 7% 4% C/f
Y1 $3.800.000,00 $266.000,00 $-160.000,00 $3.906.000,00
Y2 $3.906.000,00 $273.420,00 $-160.000,00 $4.019.420,00
Y3 $4.019.420,00 $281.359,40 $-160.000,00 $4.140.779,40
Y4 $4.140.779,40 $289.854,56 $-160.000,00 $4.270.633,96
Y5 $4.270.633,96 $298.944,38 $-4.440.000,00 $129.578,34
$1.409.578,34 $-5.080.000,00

Many thanks in advance.
Regards,
Fran!

[francihco]

Thanks for this thread. Were the notes updated after all?

[francihco]

Same here. According to the exam preparation solution on the notes, the revaluation was based on the carrying value, that being (land 500,000 + building 5,000,000-(5,000,000/50*5 dep^)= 5,000,000 substracted from the revalued amount 6,000,000 = 1,000,000 revaluation reserve.
Thus, there´s a difference of 500,000 between the two answers, the one on the video on the one on the notes.
Many thanks for shedding some light in this respect.

[francihco]

Ok,thanks. I understood the bit ” this reduction will apply to all the units produced at that level.” as from the level of production >25.000 units.

[francihco]

Thanks John, I think indeed there may be something wrong with the question. The question is from a free revision package from vifhe (virtual institute for higher education). I think they are based in Pakistan.
And yes, I’ve watched and enjoyed all the lectures, including the revision lectures.

[francihco]

I was a typo :-S

[francihco]

Ok, I found somewhere that the rule only require a minimum level of cover, which may be commercially unrealistic. Thus, I think the correct answer in B in this case.

[francihco]

Thanks, indeed, that bit is very important.

[francihco]

Thanks, very clear.

[francihco]

I’ve just passed my FA exam (83%) with solely following opentuition lectures + additional study material (BPP textbook & revision kit) and proof to be way better way of preparing for this exam that previously using a traditional and costly tuition provider which didn’t live up to the expectations at all. Thank you John & OpenTuition team.

[francihco]

Thanks John, indeed is the BPP F3 study text that I use sometimes when I want/need to complement the free lectures notes or I feel I need to know more about a specific topic.
The question posted here is actually copy/paste as it appears on the book but if as you mentioned, the working of exam questions makes it clear whether irrecoverable debts have already been removed during the year, or are to be removed at the end of the year, I should not worry to much about it.

[Author]

Posts