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Extract from Kaplan Study text–
for non-accumulating benefits, an expense should only be recognised when the absence occurs. This may arise, for example, where an employee continues to receive their normal remuneration whilst being absent due to illness or other permitted reason. A charge to profit or loss would be made only when the authorised absence occurs; if there is no such absence, there will be no charge to profit or loss.
What would be the Journal entry if a person is absent due to illness under Non-accumulating paid absences?
Suppose there are Class A and class B variants of shares. Class A of 50p and Class B of 10p. Now Class A 50p share is split into 5 shares of 10p each. So isn’t this variation of class rights of class A share? Moreover their right to vote would carry more weight too?
A. I am using BPP Revision kit (for exams in september 2017, december 2017, march 2018 and june 2018) because there were no changes in the syllabus. Not the current edition. Might be possible that there is a mistake in the old edition?
B. Yes, I got it. I guess you meant ”they had to pay for the Loan notes”(which is redeeming Loan notes) instead of “they had to pay for the rights”.
If suppose we include the overdraft, then should we take 6% and multiply it with (1-30%) to get after tax cost of debt(overdraft)?
Who else got the question with the Hotel and Water Park?
What conclusion did you arrived to? I kept both the Hotel and the Water park open….Second question on part C with Beds and Mattress, transfer pricing…buying from external supplier was improving company’s profits according to my results.
Please reply
@alinawallner said:
Robert, I think I had about 5 minutes of only thinking from where to start on the hotel question, is done anyway, hopefully we will get some marks. I stated to close the Hotel for the January and keep the water park open as the overall loss according to my calculations was the less than having them both closed or both open…Q2 I think we have the similar answer as the profit was higher for the company if was to buy the mattress from the external supplier… this was my first attempt, tomorrow I’ll have a second try on F7….
How did you get loss for hotel? did you multiply with 31 days of January, since data was given on per night basis.. I had got profit for both of them
