[kunal10]

i was going through the F2 topics to refresh. Thanks indeed john 😉

[kunal10]

(a) hence it will be 50000{1-1/(1+0.06)25/0.06}=639167.81
(b)639167.81/40=15979.20

but for (b) I think it should be calculated X={1-1/(1+0.06)40/0.06}=639167.81 hence x is 42480.07 that need to be contributed for 40 year

this number is very tricky hence it very challenging to solved.

[kunal10]

ok thk

[kunal10]

well this question was from finance(finance reporting ) book but no answer,

I tried to the number one is 639167.80 second one 677517.87 . my understanding is the two question emphasis on when we shall do the payment.

[kunal10]

Ok good . so same goods can be valued differently if they have different use for that particular company. That answer my question.

[kunal10]

So how should they value both with one weighted average ?

[kunal10]

Well yes. I asked them do they value it separetly they said yes one as equipment and other as spare part. It item is same but the use for them are different.

[kunal10]

Hi mike,

Wish u a happy new year.;)
I wanted to share some real life experience and which make me puzzle. Recently i bought a portable dvd. However it got broke i contacted the supplier and he had to repalce the item. Was wandering so the other one was as a spare part. How to valued this?

[kunal10]

Well sometime auditors also are wrong.i wanted a teacher help and opinion.

[kunal10]

I prefer ask local tutor its expensive. Thanks anyway

[kunal10]

Well if loan item not yet sold not return from it . i treat as stock. Auditors say i should treat it as ppe. I dont agree.

[kunal10]

The problem was the auditors for this issue insist it should not be treated as inventory but as ppe.

[kunal10]

Thanks mike. However how i support this by ias 16?

[kunal10]

The item is given as loan to the customer to check and it can turn to sales or even return. We treat it as inventory right?

[kunal10]

Thanks u. Ok if i sold a special type of router which i classified as for sales equipment. I do a contract with the customer if ever it broken i will replace it immediatly. Hence i need to keep same as spare part. Right? And i value them separetly as once it will replace it will be expense for me. Am i correct.?

[kunal10]

Hello sir,

In regards of ias 2. Do we have different meaning of word use and purspose?
Are they the same?

[kunal10]

Yes weighted average cost. Thank you

[kunal10]

Thanks sir.

The equipment is for sale and spare part for maintenance.

Auditors opinion : we should value both in one ( using wacc)

Shoudn’t it be valued separetly using wacc?

[kunal10]

Hi mike,

I think you didn’t get my meaning. The equipment and spare part are inventory.
Each is valued separetly using wacc.
Issue raised by auditor both should have been valued in one not separetly.

Example you have equipment A and same equipment as spare part. Auditors opinion is to value them in one not separetly.

Want to know your opinion.

[kunal10]

Yes there is obligation to pay

[kunal10]

Its like equipment given as loan but it will definitely result as sales.

[kunal10]

Hi mike,

I have a question how do we determine some item is inventory. Can u give me an example.

[kunal10]

Thank you mike

[kunal10]

Auditors say spare part should be capitalize. In which case it should be?

[kunal10]

We showed the invoice. But they want the breakdown of it. Which is difficult. The asset bought with mother company we only have the po and invoice

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