[lccl]

Hi Ken. Yes, from what i’ve learnt (which seems to be in line with the above), it’s easier to visualize when it comes to PPE, agree physical asset to register = completeness, agree sample of register to physical asset = existence. Am i right?

How about payroll, which is the physical asset and which is the register in this case?

Thank you so much.

[lccl]

I see. So it’s like selecting sample from non current asset register and agree to physical asset to ensure existence, but because wages is transaction balance (p/l a/c), it would be to ensure occurrence. Am i correct to put it this way?

[lccl]

Thank you.

[lccl]

I see. So there is no need to consider any impairment loss but to take $333,600 as the total finance lease. Is it correct to put it like that?

[lccl]

Hi. I got the answer, pls correct if terminology is wrong.

PV of $5m = $3.4m
unwinding interest = $0.272m (8% x $3.4m)

Additional cost (PV) = $1.5m
unwinding interest = $0.12m

Total = $5.292m

[lccl]

Answer given was $5,292,000.

[lccl]

The answer given was $97,080.

Could the answer be wrong =/

[lccl]

Got it. Thank you Mike!

[lccl]

Hi Mike, back to this Fresco question, can you help me understand again how the rights issue of $13.5m, is split into $9m for share capital and $4.5m for share premium in the SOCE.
Many thanks.

[Author]

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