[Nazi]

Within part (e) of the question it specifically states “Bravado has not recorded any change in value of the instrument since 31 May 20X8” so the gain of $1.5 million will already have been recorded and will be in the financial statements already.

The mistake in your solution is that you are taking the $1.5 million gain, which is causing an excess and eventually producing an incorrect answer.

The solution will be as follows:
Fv @ 1st.June.07 = 11mDinars x $4.5 = 49.5
Fv @ 1st.June.08 = 10mDinars x $5.1 = 51
51-49.5 = 1.5, this gain is already recorded in the financial statements, so you don’t have to do anything about it.
Fv @ 1st.June.08 = 7mDinars x $4.8 = 33.6
Now as you can see the fair value has declined from 51 to 33.6, a difference of 17.4m. This loss will be taken to OCE, with the following double entry.
Debit OCE 17.4
Credit Investment 17.4
The debit OCE will reduce the group OCE. and the Credit Invesment of 17.4 will reduce the financial asset in non-current assets.

[Nazi]

Yes they are helpful. But you should also buy BPP text book and Practice kit. Especially the practice kit. Its like the pastpapers of this exam

[Nazi]

I appeared in Aug,2014. I scored 70% . The exam is pretty much easy if your preparation is good. According to me the main topics are Control Accounts, VAT, and Double entry errors. These topics are like the backbone of this paper.

[Author]

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