[kamila2086]

Hi, I really enjoy doing FLP – it is more flexible than traditional way as you choose what you want do first in order that suits you. I believe FLP is available in most countries now. I have started my study end of April and I have past my E1 on 23.05, F1 I have passed 18.07. Hopefully finish P1 by end of August – the dashboard is displaying date 23.08 – but who knows as some P1 topics are tricky…
There is one thing that I do not like – there is no one who can help you with the study material – if you stuck you have to manage it by looking on youtube/OpenTuition/collegue who passed the exams etc. I have asked already and I have been told they can help me only if I have problem with the system, help me to go through the program etc but not with the study – for me ideal would ne FLP + once a month to go somewhere (or have chance online) and get chance talk to tutor to make all unclear/confusing task explained.
Case study are 4x a year and i will do first one in November – dates of exams are already advised so I can work out my holiday.

Hope it helps

[kamila2086]

Hi, I have found this forum/website very helpful so I hope you will be able to help me with question below:

It is my first one question where I am asked to exercise the option. I have calculated depreciation for 4 years and 5… it is open question so I can’t check if it match to any of the suggested answers:(

On 01 January 20X2, TFM enters into a contract to lease some equipment from KVC for a lease term of four years, with annual lease payments of T$60,000 payable in arrears. The lease term can be extended by one year for the same payment of T$60,000, also payable in arrears, and it is reasonably certain that TFM will exercise this option.

The present value of lease payments not paid at 01 January 20X2 (including the T$60,000 payable if TFM extends the lease) is T$233,400. If TFM does not extend the lease, the present value at 01 January 20X2 is T$194,400. The equipment has a useful life of six years. Ownership of the equipment does not transfer to TFM at the end of the lease term. TFM’s accounting policy is to depreciate equipment on a straight-line basis with a nil residual value.

Calculate the depreciation charge on the right-of-use asset that TFM should recognise in its statement of profit or loss for the year ended 31 December 20X2.

Consider whether TFM is likely to exercise the option to extend the lease and whether the right-of-use asset should be depreciated over the lease term or the useful life of the equipment.

Thank you

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