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Hey moderators, I have a small query regarding topic 5.
I have selected a company in a certain industry, their revenue growth in the past 3 years beats the industry, based on data available.
However when comparing with their competitor, their revenue growth exceeds them, so does the margin growth.
However, their margins still fall below the competitor drastically(which is the only possible benchmark). This is mainly because the competitor is a market leader already, and the company I’m selecting is only starting to gain the market leader’s market share.Any advice on whether I should proceed with this company, or start finding something else?
Hey experts! I have chosen topic 5 and need your help with regards to company selection. I have narrowed down to 2 companies, namely Zoom Communications and Netflix. However for both I was struggling to find benchmark industrial data.
Any recommendations on what websites I can use for the same? And would both the companies above be a good fit for the RAP?
Thank you for your support, sir. I really appreciate it and I don’t know how to thank you enough.
Thank you sir.
How do we know if the preference shares are redeemable or irredeemable if not mentioned? Because in one question they added dividends to Finance cost, i assumed it was irredeemable preference shares and didnt add it.
What about proposed dividends sir? Do we consider them as current liabilities?
Thank you for the clarification,sir. I myself was really confused by this, that’s why I asked you, I know that stationary is kind of immaterial to capitalize and was wondering why they subtracted it from administration expenses.
I have watched your lectures,thats what’s helping me do F3 without any external help!
So,what you mean to say is 280 is the realisable value, so after minusing 75 from 280 only we get the NET REALIZABLE VALUE.
Apologies! bpp revision kit 2018 is the book, I had copied this from my previous post and forgot to add the books name!
Also one more doubt Sir, in page number 90, task 2 why isn’t Buildings carried amount in the financial statements after revaluation?
I sort of figured it out after typing out this question, but thank you sir for making it a 100% clear. Love how you explain everything with such clarity!
Oh, but isnt salary an expense,and hence a DR balance? Or is it because they mentioned ‘Salary due’ and not just salary
thank you so much! makes alot of sense now 🙂
also, when adding the Net Assets , we will include the Share premium a/c?Oh ty for the breakdown,got mixed up at the start.
Also,in this question,
In the year ended 30 September 20X8, Fauntleroy had sales of $7,000,000. The year-end
receivables amounted to 5% of annual sales. At the year end, Fauntleroy’s specific
allowance for receivables equated to 4% of receivables. He also identified that this amount
was 20% higher than at the previous year end.
During the year irrecoverable debts amounting to $3,200 were written off and debts
amounting to $450 and previously written off were recovered.Its mentioned “Specific allowance of 4%”, but usually in the lectures the allowance where % was there was general and we calculate it after subtracting all other Irrec. Debts & allowances , but here they calculated it on the initial RECEIVABLES AMT 350,000 without subtracting anything,is it because its specific and not general?
So,under Indirect method we give no regard to an irrecoverable debt? like it has no treatment in cash flow
