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Thx for reply. however perhaps I should have rephrased my words so it can get across more accurately. I was actually wondering why 510 + 540 in WIP just stays there, giving additional amount to the inventory. You said it would release in line with the other costs later so could you tell me the double entry for the release of such capitalized cost after the recognition of the revenue?
Hi, thx for your kind reply.
Now I just realized that the question of example 3 in the foreign currency section was asking for a translated SFP of the subsidiary, not CSFP. It’s so pity that I was misinterpreting the question until nowI think now I got this right. It’s a huge shame, but I was forgetting about a concept of NPV and also, an initial outlay. I was mixing it up with working capital.
Thanks John. Now everything about it clears up. I really appreciate your support. Have a nice day ahead.
So do you mean that we anyway move on with the given assumption regardless of error in the figure of MVd although it might significantly affect the result of say, ungearing fugae co.?
Since ungearing equation includes MVd(1-T) as a demoninator.thx for reply.
However, referring to your AFM revision lecture question 1, appendix 2.1, Fugae co’s MVd is 388.1 whereas PV of series of all interest payment is;
$5.4 interest discounted at 4.8%, PV of perpetuity is $ 112.5
$ 112.5 per bond * 3.8M bonds = $ 427.5M PV of all interest payment.How come they are different in numbers? Is my calculation wrong?
Then total value of options cannot exceed the underlying assets, not the quantity of it right? I think I was mixed up with the value and just simple quantity.
thank you John. I haven’t watched it. I finished FM myself and was wondering what it means. It seems like ACCA getting ready modules are not made in that perfect manner in that they simply omitted square root for 1.04^5