[sguhman]

Hi sir

Thanks for your comments. I have mentioned your service to a few people now and we all agree it is a very good platform for learning.

[sguhman]

Hi sir

I will check, however passed the objective test now so moving on to p2.
Thanks for your help , much appreciated

[sguhman]

Thanks. 2 Nnd part says nci increases but surely as we purchase
More then nci reduces as we have more control.

The question said nci increases and the increase would depend on whether fair value or prop of net assets was used

[sguhman]

Hi

Could you please get back to me asap

Thaunks

[sguhman]

Hi jocathy

I purchased Cima aptitude and it includes many practise questions
Which really help.

I would recommend them as they are timed and untimed so easy to fit
In your schedule.

Let me know if I can be of any further help

[sguhman]

Sorry sir

Totally lost with this ? Roce is causing me issues and I do not follow
Any of the explanation, so out of the 3 which would be the answer?

Also my understanding is Roce is profit before tax over equity and net debt, I am aware that the above example is realting to p&l but just
Don’t get which answer is correct and why?

[sguhman]

Hi sir

O,k so the denominator includes all equity share reserves etc plus net debt overdrafts and borrowings but we exclude creditors and d tax as these are liabilities not equity? So liabilities such as loans are included
Because it is equity plus net debt, but ignore d tax creditors as these are liabilities.

What other items do I need to watch out for as this is a bit tricky.

[sguhman]

Hi sir also which of the 3 parts to the question would be the answer as it appears that non of them fit.?

[sguhman]

Just noticed in another question on Roce that long term borrowings and overdraft have been included in the denominator?

I would have classed these as liabilities and not equity?

[sguhman]

Hi sir

Sorry having trouble understanding about asset turnover and how this is affected? I am ok with the sales volume part but can’t get to grips with the part where you mention co.b could not have revalued its equip upwards ,I understand the fact the capital employed would be higher but don’t understand how the asset turnover would be lower?

[sguhman]

Thanks sir

[sguhman]

Thanks

[sguhman]

Hi sir

Thanks I will re check however it clearly states that 10 left and the estimated for following years is 30 and all questions I have attempted previously to this one always deduct the actual leavers when calculating the liabilty and p & L all charge.

[sguhman]

Hi

What is normal turnaround for questions to be answered as I need help a.s.ap

Thanks

[sguhman]

Hi

In relation to no.4 am I correct in saying that if share based payments are completed then this would NOT cause gearing to reduce as profits will be reduced and equity increases therefore this is another situation which would not cause gearing to reduce?

[sguhman]

O.k thanks

[sguhman]

Sorry my error

[sguhman]

O.k thanks sir that makes sense.

[sguhman]

Hi

Sorry just noticed that option 4 – you mention gearing increases but this is answered as not affecting gearing because the profits will reduce and the equity increases therefore this has been highlited as another of the reasons for gearing not to reduce, can you please check and confirm?

[sguhman]

O.k thanks

[sguhman]

Hi
The question is that gearing reduced from 29 to 19.which if following would NOT be a reason,

1- plant machinery revalued
2- company issued 10m convertible bonds before yr end
3- company undertakes 2 for 1 rights issue
4- company began new equity settled share based payments

[sguhman]

O.k thanks

[sguhman]

Thanks finally found it.

[sguhman]

Thanks.

[sguhman]

Hi, really sorry but I have gone through each chapter heading and can’t see one called derivatives?

[Author]

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