[sarita82]

Thanks John 🙂

[sarita82]

Hi John,

Regarding issue cost, if it is 2% gross of finance required it means we have to calculate by x 100/98 to get the gross amount.

For calculating the tax shield and subsidy benefit, why don’t we calculate as per the gross amount?

Thank you

[sarita82]

i also need the same help. Can it be prepared in one month with self study?

Have you started Vaidehi?

[sarita82]

I have the same question but I couldn’t see the answer

[sarita82]

Opening and closing balance as per parents SFP
Share on profit as per P&L 73 not too sure it’s after tax or not. There is no information regarding tax.

So if it is associates gain, it will be under investing operations in cash flows?

[sarita82]

Thanks Mike.

This is the information from the question

Opening balance 72 (per SFP)
Share of profit in associates 73 (no tax provided) (P&L)
Dividend received 61 (notes)
Closing balance 96 (per SFP)

Can I assume that the difference of 12 (balancing figure) as an investment in associates?

[sarita82]

Thanks a million John! Now it’s cleared 🙂

[sarita82]

Oh yea understood. Thanks 🙂

[sarita82]

Hi John,

To calculate Y3 dividend why do we need to divide by (0.12-0.03)?

[sarita82]

Sorry John

Beta equity > Beta asset; WACC < Cost of equity calculated using beta asset; WACC < Cost of equity calculated using beta equity

[sarita82]

Mcqs were so mean. And relevant costing no practice.

[sarita82]

Because Ventor is the associates and has acquired since 1 October which is only 6 months. If I’m not wrong 🙂

[sarita82]

Is it because of additional depreciation of $100?

[sarita82]

Hi Mike,

Back to q1.

When calculating retained earning, southstar post acquisition should be 6/12*($4600) – 600 = $2,900. But on the answer its $3,000. Can you explain please.

Thank you

[sarita82]

Though of knowing easiest way to understand under/over provision.

[sarita82]

Yes I got it. Thanks Mike

[sarita82]

Mike,

When current tax is in debit side, it’s definitely under provision. Am I right?

[sarita82]

hi guys…how is the study going on..??? is there any group created??

[sarita82]

So Dec exam will have multiple choice?

[sarita82]

This is what made me confuse. I thought that were net. Thanks a lot John.

[sarita82]

If they were discounted, why do we need to get off the 5% again if TD stop? If 950,000 is net then the actual price should have been 1,000,000. Sorry if my question is silly. But I’m still confuse.

[sarita82]

The 70 & 100 were not discounted price?

[sarita82]

I have failed last dec and trying again now. It’s soooooo hard. Hope we can do it better this time!

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