[maisamzaidi]

Thanks very much Sir!

Really appreciate it. GOD Bless.

Regards,
Maisam

[maisamzaidi]

Dear Sir,

Thanks for your answer. But, if, for example, you have made a loss in first year (International Investment Appraisal) even before deducting capital allowances, what would happen in that case? Would we still deduct capital allowance from loss and make a bigger loss to set it off against future profits or do we loose the capital allowance for the first year?

Thanks!

[maisamzaidi]

Oh that’s good to hear. At least my understanding is correct. Thanks for clarifying.

Regards,
Maisam

[maisamzaidi]

Thanks for your help sir. I was using the mid-market spot to calculate lock-in rate as in your lectures you told us to use mid-market spot rate when two rates are given.

Thanks once again!

Regards,
Maisam

[maisamzaidi]

Hello Sir,

Just a quick update. The lock-in rate I calculated is 0.8647 with the basis on 1st of March being 0.0049 and on the date of transaction 0.0012 (change in basis = 0.0037)

The examiner calculated lock-in rate being 0.8650 using both march and june futures.

Am I doing it wrong? I need your help.

Thanks!

Regards,
Maisam

[maisamzaidi]

Alright. Thanks very much sir. Really appreciate it.

Regards,
Maisam

[maisamzaidi]

@lynnecart said:
I’m with you on the cash flow – did loads of consol SoFPs, one cash flow weeks ago. Just – you’ll get marks for the bits you did do.

On Q3, I went with something along the lines of:
– this is IAS16, PPE
– you are allowed to revalue
– carrying value can’t be greater than recoverable amount
– rec amount is higher of FV less costs to sell and value in use
– what’s value in use? – well I guess there must be a floor on that of $100m if someone’s willing to give you that much to put a couple of stickers on it
– get a market valuation and do a DCF of future net inflows attributable to the stadiums
– if the results of both of those are lower than $100m, then you can probably revalue it to $100m?

I’ve no idea if this is a load of baloney or not.

I guess if they did go on to do the deal with the airline, then they’d debit cash $100m, credit the asset valuation $100m because you’d then be unable to let anyone else put their sticker on it for however long…

The other bit wasn’t nice either – the footballer contracts. I went with application of IAS 38. I thought it might be something to do with financial instruments but I’ve never understood how the theory of that stuff relates to reality so chose to ignore it.

I chose to scrub Leases en masse from my prep – too time consuming – so def hadn’t read the ED and was pleased in a way that it was a big question I could rule out straight away, rather than a little bit of one.

Good luck everyone.

IAS 38 is not Financial Instruments. IAS 38 is Intangible Assets – IFRS 9 is Financial Instruments.

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