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Ok thanks for your help.
The depr issue is just to confirm with you only as our tutor said that normally depr charge will be inclued in adm expense if question say nothing. So if there instruction given by the question then sure I did not concern.
Meant that i can caculate investment in associate in Ashanti Group based on 21% (70%x30%)?
What if Bochem interest in Cerem is only 20%? How we deal with group report?
By the way, for this P2 often charge depreciation cost into admin expense, not cost of good sold? Is that right?
Looking for your help. Thank you.Sorry Mike, I still confuse.
Last sentence note 3 is that the RA had been determined WITHOUT consideration of liabilities which all related to the financing of operation.
So I think it must be net asset. But actually solution is total asset. Net asset is 879 and total asset is 1130. Pls help me.By the way if the question just give RA of sub for impairment test so we can understand it is to compare with net asset(Not total asset/ or total equity and liab)?
Luckily I know Opentuition. Thanks for your support Mike.In one Kaplan interim assessment there is an explaination on that. Inventory is not translated at the end of reporting period but need to be carried at lower of cost and NRV.
By that NRV need to use the year end rate to translate.Oh Mike, sorry. The question is in Dec2011 for Traveler and Minny is from Dec12Question.
Looking forward to your help. Thank you.Dear Mike,
What material should we read to have clearer picture of this topic? Can you guide us some issues we should care of this topic and some example questions?
Thanks a lot.@gyanmichael said:
Hi Mike, Please am a little confused about convertible loan note.<br />
Suppose a company issue a $80 million 8% convertible loan note. The term of conversion is $100 of loan note will be converted into 50 equity in 5 year time. Effective interest rate is 12%<br />
The initial measurement will be:<br />
6400*3.04 =19456<br />
86400*0.57= 49248<br />
Debt element is $68704<br />
Equity option is $11296<br />
Proceeds is $80000<br />
*** So now my question is, at the end of the 5 year period if the option to convert to shares is chosen, will the debt element of $68704 be converted into 68704/100*50 shares to give 34352 shares. And must it be added to the initial equity option calculated earlier on 11296 to give a total of 45648. Thank you very much.Teacher, please help me to understand this point: I feel confuse already.
I thought that Co. issue 80mil loan note. If end of the period the holder decide to convert it to share then total shares should be: 80m/100*50=40mil shares. There should be $40mil in Share Capital and the balance in Share premium?