Forum Replies Created
- December 22, 2010 at 1:45 pm
yes i m in karachi, but man the charge u r telling me which is PKR 450,000 is not affordable for me at least, it is very huge amount, i should forget about this SAP thing which u mentioned but thanks for providing me the informationDecember 22, 2010 at 7:51 am
what do u mean by trying SAP from Siemens in karachi ? do i need to take classess to learn SAP from Siemens and pay fees to them or I will be there as a trainee for SAP without any charges ? if it is as trainee then i don’t think so it will be so easy to be hired as trainee .
please give me further details about it. ThanksMay 28, 2010 at 9:21 pm
Always see the wordings used by examiner for loan note. if it is written that parent issues loan note then always include it cost of consideration. keep an eye on the word of issue . whether loan note is issued by parent or not, there is word of issue for loan note or not,
and in all other circumstances, where this is no word of issue for loan note then do not include it in cost of consideration and treat it as intra-group transaction.
apply it in every question and in every case, u will see each one correct.
Thanks, hope it is clear to u now.May 27, 2010 at 6:17 pm
1)As mentioned above,”tax is payable one year after the end of the accounting year in which the transaction occurs” is the same with “tax is payable in arrears”?
2)Past question (AGD Co-Dec 2005) stated that “annual lease rental s will be paid in advance (in Jan of each year of operation) and tax liabilities are paid one year in arrears” ===> why the tax relief is given in YEAR 2?
1) yes both r same, meaning tax is paid with a delay of one year, meaning tax of first year wil be paid in 2nd year.
2) tax relief is given in year 2 just bcoz tax of first year is paid in 2nd year.
Small tip, which may help in such situation.
1. always take tax saving from capital allowance in the year in which tax is paid.
it is much better logically, for instance, if u pay tax in 2nd year then how can u get tax relief in first year ? doesn’t make any sense, so both must be in same year but even if u put CA in first year and tax is in 2nd year that is acceptable too by examiner but it is not better.May 25, 2010 at 10:26 am
assalam-o-alaikum Shunmas Beeablo
ok so u have problem with the term “confusion” used by me in my every reply. lol
why only u have problem with that term ? if it is really true why not anyone else is pointing it out ?
if someone has some problem and getting confusion to understand/solve it then when i say in my reply let me clear ur confusion with that problem then what is wrong in it ? just can’t understand, u r the only one who is saying this, i would like to know more comments on it by others whether i m wrong using the term “confusion” in my reply or not then only i will decide not to use it again in my reply
If u go in F7 forum , u will see a topic created by user named with “Confused with the Workings method” and i can’t use the term confusion in my reply to clear that confusion with that problem , then it becomes embarrassing word ?
ofcourse everyone here is a volunteer and learner and helping each other to solve the problem and that’s what i m doing here
love u allMay 23, 2010 at 7:11 pm
i think, there is no particular way defined to show ur working in either of sequence u mentioned.
u can show ur working, the way u find the most easy, it is up to u, all u have to care is just put working number reference correctly.
i also personally believe that working of group structure should be given working number 1 (logically better) and the rest is up to u,May 23, 2010 at 10:45 am
plz limit urself to the problem and not to the whole question, it is too time consuming to explain u the whole question with answer. it would be better to solve ur specific problem in question .May 23, 2010 at 10:42 am
here i m to clear ur confusion regarding fixed cost in this area.
make a note assumptions on fixed cost:
1. if nothing is mentioned about fixed cost then treat it as relevant fixed cost, (incremental fixed cost)
2. if in question, examiner has given budgeted activity level / budgeted production and fixed cost per unit then always calculate total fixed cost based on that budgeted production units which will remain fixed over the period of project life.
3. sometimes examiner does not give u budgeted production units and just give u fixed cost per unit and different sales units over the project life then in that case always make an assumption that first year sales units is budgeted production units and calculate total fixed cost based on first year sales units which will remain fixed over the project life.
hope it clears ur confusion.
Love u alllMay 23, 2010 at 9:35 am
ok let me clear ur confusion here. accounting profit is not cash based, whatever the accounting profit is that does not mean that is whole cash so to make this profit cash based we prepare cash flow, cash flow convert account profit into cash based profit.
now to reply ur question.
profit before tax
if u see in solution when u take profit before tax, then in that case, first interest expense is added and interested income is deducted, u know why ? just bcoz we do not know how much interest expense or interest income is on cash based then after doing this adjust adjustment we deduct actual cash based interest expense and add actual cash based interest income.
Starting with Operating Profit:
when u start with Operating Profit then u do not need to add back interest expense and do not need to deduct interest income, , bcoz their impact is not included in operating profit, all u need to do is just directly deduct actual cash based interest expense and add actual cash based interest income.
u have to follow this concept with every adjustment whether their impact of non-cash based is included profit or not and work accordingly to that.
hope it clears ur confusion.
Love u allMay 14, 2010 at 1:57 pm
if anything more, let me knowMay 14, 2010 at 1:55 pm
don’t get wrong concept. You just need little understanding here, let me clear, as u know in goodwill calculation pre-acquisition retained earning will be added but do u have any idea what is pre-acquisition retained earning ? pre-acquisition retained is on the date when parent acquires subsidiary or before that period.
in this question u need to calculate pre-acquisition retained earning and u must remember that how closing retained earning come on SFP.
Closing retained earning:
opening retained earning xxx
add/less profit/loss for the period
less dividend paid
then comes closing retained earning
now just go reverse to find out opening retained earning which is pre-acquisition retained earning. loss of 3000 for the period was deducted from opening retained earning then closing retained earning became 6300 , now just add loss of 3000 into closing retained earning of 6300 then u will get pre-acquisition retained earning of 9300.
Thanks. hope it is clear to u now.April 23, 2010 at 9:21 am
@murtazanek don’t get confused , since nobody answered to ur particular question. i would like to answer and make it clear to u with ur given question.Code:A Co Acquired B , at the time of Acquisition fair value of land is decrease by 5M ,it is written down by this amount shortly after the aquisition and has not change in value since then .
if fair value increases, we add that amount in goodwill calculation but since in this adjustment fair value is decreased by 5m then we will deduct 5m from goodwill calculation. and in net assets of subsidiary. there will be 5m with minus sign at acquisition date and there will be NIL at reporting date of net assets in acquisition.
u might think why it is NIL at reporting date. let me clear u. if u look at the adjustment. it clearly says it is written down by this amount shortly after the aquisition, this sentence means parent has already taken affect of fair value decreased in its accounts book, meaning parent has already decreased the value of LAND by 5m in its accounts book. now you don’t need to decrease the value of LAND by 5m on consolidated SFP. and there is no balance of fair value decrease at the end of financial period since parent has already taken its affect in its accounts book, that’s why there is NIL at reporting date in net assets of subsidiary.
Thanks, hope it helps u