[MrPersonable]

90% first attempt….Open tuition doubt solving forum is superb

[MrPersonable]

I mistakenly went into the FM forum thread thinking it was FR…almost had a heart attack when I looked at the poll where most people were saying it was easy xD. thankfully I realised it was the FM poll before my condition became critical

[MrPersonable]

Yeah thankfully I remembered the dividend.I put it through SOCE(reduced from RE) than input all those balances to SOFP.
As for the loan note I think you misunderstood me.
In the SOFP the value that I put in was TB amt+Finance charge (13.8k)
Since the interest payment was not made in the current financial year(would be made in 1st day of the next year).
Usually in all the practice kit question the interest payments were made at the last day of the year, if that would be the case in this question than the amount of loan note would remain unchanged due to the rates being same(loan note at start of year + finance charge – interest payment = loan note at end of year).
And for the SC and SP it was SC 20m and SP 40m(or the other way around don’t remember), it was supposed to be equal to the suspense balance right?

[MrPersonable]

I did expense the finance charge (which was same as interest due to both rates being same), and this think it was 13.8k.The interest would be paid next therefore it would not reduce the loan note liability(usually if both the rates are same loan note remains unchanged in SOFP), but the finance charge would still increase it, the loan liability in SOFP was TB amount + the finance charge (13.8K) and for the revaluation was upwards of 500(with a lot of zeros probably million) yeah it was quite high, although it wouldn’t have effected the profit, it would have only effected the SOCE and SOFP.Thankfully i had practiced making the SOCE

[MrPersonable]

zainahmed91 I think my profit was 12m something went into a lot of points(my cals were in millions), the provision was creating a lot of problem as I think after including it in profit the provision was supposed to be 5% and another thing that was creating problems for me was the loan note(problem in balance sheet not profit) because its payment was being paid next year, therefore even after the effective and interest being same the loan note’s value was going, hopefully didn’t blunder it, although my balance sheet did match, and I hope you are talking about the question which asked to calculated adjusted profit, statement changes in equity and financial position

[MrPersonable]

Thanks a lot

[MrPersonable]

Thx a lot for your help

[MrPersonable]

Why does the same logic not apply to Leases.
Leases are split into current and non-current even though lease are also not paid in full until the end of the lease period.
When accounting for both leases and loan notes:
Finance charge is added to liability and deducted from P/L
Repayments are deducted from liability
But only leases are split.

I am not completely satisfied by your logic that its because they are not paid in full until after 12 months because same should then apply to leases

I am have a different reason(which is some what similar to your logic), tell me what you think about it.
Reasoning:The reasons loan notes are not shifted to current liability is because no principal amount is repaid until the loan notes mature(the repayments only include interest), as oppose to in leases in which some principal amount is repaid with every instalment.

Let me know if incase you were saying the same thing and I some how misunderstood it

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