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@marekchalcak said:
Can someone explain why q20 is C and not D inventory has impact on cost of sales which will decrease gross margin and not operating margin answer D seems more correct as transfer of amortization from cost of sales to admin costs will increase operating expenses and decrease operating marginlol..I did silly mistake too much time pressure
q16 should be D why ?
Providing $1 million for deferred tax at 25% relating to a $4 million revaluation of property during March 2015
even though Cumla has no intention of selling the property in the near futuredeferred tax is non-current liability not provision
I have A
Making a provision for a constructive obligation of $400,000; this being the sales value of goods expected to be
returned by retail customers after the year end under the company’s advertised 30-day returns policyA constructive obligation arises if past practice creates a valid expectation on the part of a third party, for example, a retail store that has a long-standing policy of allowing customers to return merchandise within, say, a 30-day period. [IAS 37.10]
Can someone explain why q20 is C and not D inventory has impact on cost of sales which will decrease gross margin and not operating margin answer D seems more correct as transfer of amortization from cost of sales to admin costs will increase operating expenses and decrease operating margin
@gdjay said:
Marek. there are now suggested answers available on the main F7 forum:https://opentuition.com/topic/answers-to-f7-june-2015-exam-section-a-mcqs/
Q2 is D.
You are correct on the others with exception of Q20 which is C
Q2 yes i noticed it but I cant find anywhere in books that intangible assets should be impaired before tangible assets
it looks like i got 14 anwers correct hopefully this might help me to pass I assume that pass mark will be lower than Dec exam which was 49
@paking said:
In regard to MCQ (2) – I choose B as future economic benefit doesn’t require revenue but also includes for internal use a reduction in costs. I was split by B and D for this reason during the exam.I think as well B is correct , D first part was correct but it is not true that intangible assets are impaired first before tangible the more important factor is recoverable amount
C answer is correct parent is used only with relation to subsidiary and not associate
I was also confused by cap.interest, I think I did this incorrectly 3/12 were included in net assets at acq and total in rep.date difference included in post-acq