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I mean I understand how we get it but not why we deduct it from the 35k to get the net cash flow. Why is it a tax saving? Isnt it the amount we will pay for taxes at the end of each year?
As per question sorry:
Penketh Subsidiary
Investment income (note (iii)) 5,000 1,600Note iii: On 1 October 2013, Penketh also acquired 30% of Ventor’s equity shares. Ventor’s profit after tax for the year ended 31 March 2014 was $10 million and during March 2014 Ventor paid a dividend of $6 million. Penketh uses equity accounting in its consolidated financial statements for its investment in Ventor.
Answer:
Investment income: Other ((5,000 – 1,800 dividend from associate) + (1,600 x 6/12)) 4,000
Hi Mike,
Regarding this question why in the SPLOCI in the ine of investment income:other we deduct from the 5k the proportional part of the dividen paid by the associate?
Oh sorry! I just recall that time serial calculations will not be asked anymore, s then lets forget about Sauce Co. right? Then my concern is just towards Lock co. Thank you!
Hi John,
Is there the lecture where you explain this question? Because I’m reviewing the past papers and now I’m on June 2012 and I have a question regarding Lock co and Sauce Co , I would like to see how is the approach towards them.
Thanx for the reply!
Mike I’m just not following the answer from the practice questions number 9 the rest I have done them and are clear, if you could please give me some light with that one will be very much appreciated.Thank you!
Oh sorry for that! We were supposed to calculate the contribution per project. By mistake I included the answer there which is The contribution earned from each type-A project provided is £580. From each type-B project it is £620. However I don’t understand why the admin expenses are not consider into the contribution.Thank you for the clarification!
What about the question 2 generally Kandid was performing much beter than konvex right? I mean all the ratios were favorable to her as far as I remember
Yeah that’s right I forgot that in case there is a loss recognized in the period it should be stated in the current period, instead of considering the % of the cost!!
The figures I got are as follows:
revenue recognized 500 cost recognized (550)= loss recognized (50)
cost to date 550 attributable profit (50)= 500
amounts invoiced (475)
Amounts due from costumers 25Hi Mike,
I did it but apparently I didn’t pay attention to the details, so sorry for those silly questions. However I will pay double attention to the details otherwise I will not be successful in the test! Thanks for your time!
Cheers!
Oh! That’s great! I was just not sure if you received the post 🙂 Definitely,I will wait without any problem as much as you need, even more today is Sunday! So actually many thanks for making some space for all of us today 🙂
Enjoy the rest of the weekend 🙂
well it says that the transferred was on 1st October 2010 and that at this date there were two and a half years of remaining life for the plant. The financial statements need to be prepared for 31.03.2011. That’s why I got the confusion, thanks for the clarification.
Hi Mike,
But I don’t exactly get why it is divided into 5 periods, sorry for the silly question :/
Cheers!
Hi Mike,
I have re-read the question a couple of times but I still can’t get the answer from the opening & closing inventories (even with algebra). I’m getting a bit frustrated.
On the other hand as well from the mini exercises of cost sales on the question number 15 I don’t get why we calculate the pup from the figure of 11,600 (I understand is coming from 16-4,4) though it is not stated in the question that “s”sold any of these items so shouldn’t the PUP be calculated from the 16k?
Thank you once again for your help!Cheers!
Miguel
Correct! Thank you! I’m a bit blocked after all day of studying …I’m taking a break now! 🙂
Yes than you! Although I have one general question about development expenditure, in general basis amortization of the development expenditure should commence at the begging of the accounting period following capitalization? In case it is not are we going to receive this info in the exam? Thank you once again for your help.
Best regards,
Miguel