Forum Replies Created
- AuthorPosts
- December 8, 2015 at 6:26 pm #289245
@rav2013 said:
I said the revenue should not be recognised at the end of year 1 as a condition for a contract is not met – consideration must be probable, which it wasn’tAlso mentioned an adjusting event for the revenue as a contract condition was subsequently met and the consideration became probable. And they should recognise 65% on a % completion basis as it meets the conditions.
Simultaneously rec’d and consumed, created for customers use etc.
It was really hard… no knowing what was going through the examiners head.
Did anyone do the licences question in 2?
I said the same on the adjusting event said that the percentage completed would change now as contract terms have changed.
However I said that the 65% of revenue should be recognised as 65% of the
Construction of the printer was complete (construction contract) but then this should have been adjusted for the change in contract.These discussions questions are not straight forward at all.
December 8, 2015 at 6:04 pm #289199I removed the foreign subsidiary loan and the asset from the company.
I removed the loan which the remaining amount was 40m dinars from non current liabilities before conversion.
December 8, 2015 at 5:58 pm #289187The pension plan was currently valued at 15m and then revalued to 17m so surely it would be a cr 2m non current liabilities
December 8, 2015 at 5:56 pm #289182Rav – how did u get dr ocoe 6.5 can I ask?
December 8, 2015 at 5:49 pm #289169That was tricky.
He gave a net obligation.
Which had an interest rate attached I used the start period interest rate and not year end. The net expense I took to retained earning.
The pensions paid to employees would have an entry of dr pension liability cr pension liability so it would have a NIL effect on the NET obligation.
There was a 3m gain on previous conditions that I dr obligation and cr retains earning.
Then there was an actuarial comment that stated that the pension was measured net at 17m the company only had recorded 15m in current liabilities I cr current liabilities 2 and took the remeassured amount to OCOE.Please not I am not saying I am correct but this is what I did.
December 8, 2015 at 5:40 pm #289164I got 1.45 post aq reserves for the foreign sub.
I thought question 1 was fair but a lot of adjustments on the foreign PPE removal of staff costs, depreciation, profit on land disposal, revaluation gain.
Question 3a) was a joint operation should of equity accounted for it.
E.g take ur share of profit after deducting your share of expenses
Make a provision for the decommission costs at pv then unwind the provision each period. The decommission costs should have been depreciated .3b) I thought was a financial instrument that should be measured at amortised value. As the payments that are usually for cash was replaced by gas. The payments of gas was of interest and principal. Thoughts?
3c) was strange the first part I wrote a provision should be made for parts but not for labour
The second part I wrote that the expenses should be expensed and not amortised as they are just research costs and no economic benefit is probable.
4a) the five step model for revenue for 13 marks which was great.
Part b)I said the revenue should be deferred until control of the printer is transferred as the company pays in advanced but the asset transfers after two years.
B) was a weird one. I said the company should recognise 65% of revenue and costs but the change of the contract gave rise to an adjusting event as it would change the amounts recording in the financial statement as the percentage has now changed.
June 2, 2014 at 5:03 pm #172780Sokratis, I answered your question before the thread was closed.
Your answer would be relevant as long as u converted minutes into hours. E.g 6 minutes = 0.1 hours and worked it out like that.
Regardless if you used hours or minutes your answer should of been 20,000 units of X and 66,000 units of Y.
This is what most people are getting for the optimum contribution.
Hope that helps
June 2, 2014 at 4:49 pm #172771Sokratis, as long as u changed the minutes into hours for the constraints you should be fine e.g 6 minutes = 0.1 hours. You answer should have been what most people got X = 20,000 y= 66,000 the number of tablets produced would not change.
June 2, 2014 at 4:31 pm #172759It was fairly straight forward. The y tablet used the least time in each three constraint, and it’s contribution was higher than X. So the Idea was to make y to the highest demand. My graph indicated this with the contribution lines.
I may be wrong.
June 2, 2014 at 4:24 pm #172750Marks do carry forward
June 2, 2014 at 4:17 pm #172741Hope my input helps someone.
Q1) abc first unit increased in price slightly causing demand to fall because of price elasticity.
Second unit decreased in price causing demand to increase.
Third unit increased in price but since it was inelastic the demand would increase.Q2) x= 20,000 y=66,000 the main constrain was the first equation as that was making the fewest tablets.
The slack was simply the other two equations left over minutes.Q3) part a was fairly straight forward. The transfer price was the minimum the division would accept so the variable cost with the opportunity cost lost selling to external customers vs the market price. (think I messed up TP)
Q4) was straight forward with a pay off table both my answers suggested $35 was the best price to charge (including minimax) that was simply to decide which price generated the most profit at minimum level of sales.
Q5) straight forward variances. Can’t remember my exact answer but I think part one was adverse and one favourable because of more sales.
- AuthorPosts