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Greetings from Nepal. Thank you so much Opentuition. Scored 73 at first attempt with Open tuition. The journey towards affiliation was eased with your lectures and notes.
Is it feasible to pass doing open tuition notes and past exam paper in this week?
I am ill and dnt think will be able to give exam. Will bed rest be considered by ACCA
Sir, opentuition has always been my greatest support towards study. I will definitely use the note and lectures that i always did. Thanks to all of you.
I found a kaplan book online 2015 edition… Can that be used if i want to grasp more ?Sir, I cleared p1. Left with p3 .What to do next ? Thank you for your response.
Sir , do the examiner fail anyone if one could not write the right audit opinion ? I mistaken that question.
A company has 7% loan notes in issue which are redeemable in seven years’ time at a 5%
premium to their nominal value of $100 per loan note. The before?tax cost of debt of the
company is 9% and the after?tax cost of debt of the company is 6%.
What is the current market value of each loan note?Sir, i am really confused with it….should i use after tax or before tax here ?
here as the market value has been asked , they are the investor who decide the value so before tax to be used ?I really dont get the point. What if it is done to pay interest of bank as you said.?
Yr ended 30 nov 2007
Retained profit of susan(subsidiary)=69000Susan earned a profit of 9000 in the year ended 30 Nov 2007.The loan note in Susan book represent monied borrowed from his parent company karl during the year. All of the loan note interest has been accounted for.
In this case it doesnt say when it has given the loan in particular and says it has accounted for loan note interest. So should i assume that the profit figure has already incorporated those issue. Should i adjust the profit of post acquisition period or just time apportion 9000 to calculate retained profit for the date of acqusition?
Much confused whenever there is a loan note part along with profit given and have to find out retained earning at acquisition date.
Retained for the year means the net profit for the year. Is not it?I am always hanged up with the word Credited to something or anything else. Say, Government grant has been credited to operating expenses during the year. So how do i treat it when i am making a t account of govt grant?
I was thinking of deducting the fair value adjustment from plant,property and equipment.But Yes !!
So does that mean whenever there is issue of loan note after acquisition. we must calculate postacquisition profit on its basis ?
Statement of profit and loss :
Depreciation (w (i)) 13,800
Loss on write off of engine (w (iii)) 6,000
Repairs – engine 3,000
– Exterior painting 2,000Statement of financial position as at 31 March 2009
Non-current asset – Aircraft
Cost Accumulateddepreciation Carryingamount
$000 $000 $000
Exterior (w (i)) 120,000 84,000 36,000
Cabin fittings (w (ii)) 29,500 21,500 8,000
Engines (w (iii)) 19,800 3,700 16,100
–––––– –––––– ––––––
169,300 109,200 60,100For engine answer is presented as :
Engines – before the accident the engines (in combination) were being depreciated at a rate of $500 per flying hour. At the date of the accident each engine had a
carrying amount of $6 million ((12,600 – 600)/2). This represents the loss on disposal
of the written off engine. The repaired engine’s remaining life was reduced to
15,000 hours. Thus future depreciation on the repaired engine will be $400 per flying
hour, resulting in a depreciation charge of $400,000 for the six months to 31 March
2009. The new engine with a cost of $10.8 million and a life of 36,000 hours will be
depreciated by $300 per flying hour, resulting in a depreciation charge of $300,000
for the six months to 31 March 2009. Summarising both engines:
Cost Accumulateddepreciation Carrying amount
$000 $000 $000
Old engine 9,000 3,400 5,600
New engine 10,800 300 10,500
–––––––– ––––––– ––––––––
19,800 3,700 16,100And my problem is i couldnt get 3700 as depreciation ?
its a june 2009 question.I would like to put up whole question to u as previously i had extracted a portion of it only.
Flightline is an airline which treats its aircraft as complex non-current assets. The cost andother details of one of its aircraft are: $000 Estimated life
Exterior structure – purchase date 1 April 1995 120,000 20 years
Interior cabin fittings – replaced 1 April 2005 25,000 5 years
Engines (2 at $9 million each) – replaced 1 April 2005
No residual values are attributed to any of the
component parts.
18,000 36,000 flying hours
At 1 April 2008 the aircraft log showed it had flown 10,800 hours since 1 April 2005. In theyear ended 31 March 2009, the aircraft flew for 1,200 hours for the six months to
30 September 2008 and a further 1,000 hours in the six months to 31 March 2009.
On 1 October 2008 the aircraft suffered a ‘bird strike’ accident which damaged one of the
engines beyond repair. This was replaced by a new engine with a life of 36,000 hours at costof $10.8 million. The other engine was also damaged, but was repaired at a cost of
$3 million; however, its remaining estimated life was shortened to 15,000 hours. The
accident also caused cosmetic damage to the exterior of the aircraft which required
repainting at a cost of $2 million. As the aircraft was out of service for some weeks due to
the accident, Flightline took the opportunity to upgrade its cabin facilities at a cost of
$4.5 million. This did not increase the estimated remaining life of the cabin fittings, but the improved facilities enabled Flightline to substantially increase the air fares on this aircraft
Required:
Calculate the charges to the statement of profit or loss in respect of the aircraft for the
year ended 31 March 2009 and its carrying amount in the statement of financial position
as at that date. Note: The post accident changes are deemed effective from 1 October
2008SoFP :
Engines Cost 19,800 accumulated depn 3,700 carrying value 16,100I dont understand how its 3700 ??
Thank you sir for your reply. And yes because of my outdated mobile version the videos are not played in my mobile so i am not able to watch them properly.Yet i have watched fortunately two or three which were really outstanding.
Thank u much .