[sis00]

Someone could help me with Q9? There is my solution:
land – 2000
building -10000-10000/25/2=9800
AC – 4000-4000/10/2=3800
Total 15600 it’s D
But suggested answer for this Q – A
Where am I wrong?

[sis00]

I think in Q8 we deal with
I – 40% associate
II – sub since Germane has ability to convert loan into equity shares
III – 49% associate
When we consider parent we deal with subs and associates so my choice is D

[sis00]

@chris1975z said:
I agree with James on investment income. What happened in year is irrelevant in respect of closing balance as it’s simply $6.5M – given to us!! The movement in the year is for the cash flow part of the question only. It already tells us the movement on the $1.4m to $1.6M has been recorded in investment income too. In other words – nothing needs doing with it as it’s been recorded correctly.

But how could be explained the movement of investment from 6000 in TB to 6500 at FV? I see two options: of something have been purchased (can’t see indications of this in question or revalued). If revalued it should be in P/L.

[sis00]

Regarding investment through P/L.
Opening – 6000
Sold – 1400
Closing – 4600 but closing at FV 6500, thus surplus 1900 goes to P/L as well as income (300 dividends, 200 profit on sale)

[Author]

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