[Stephenamell]

Stephenamell wrote:IN ADDTION TO THIS I HAVE DOUBT IN A PARTICULAR ADJUSTMENT
Kaplan 353 Question<br>On 31 March 20X1 Highwood factored (sold) trade receivables with a book value of<br>$10 million to Easyfinance. Highwood received an immediate payment of $8.7 million<br>and will pay Easyfinance 2% per month on any uncollected balances. Any of the<br>factored receivables outstanding after six months will be refunded to Easyfinance.<br>Highwood has derecognised the receivables and charged $1.3 million to<br>administrative expenses. If Highwood had not factored these receivables it would<br>have made an allowance of $600,000 against them.

sir,
The HIGHWOOD question which i posted is a particular adjustment in a single entity question.I have shared ACCA’s link for full question
http://www.accaglobal.com/content/dam/acca/global/PDF-students/2012/f7uk_2011_jun_qu.pdf
Thanks

[Stephenamell]

IN ADDTION TO THIS I HAVE DOUBT IN A PARTICULAR ADJUSTMENT
Kaplan 353 Question
On 31 March 20X1 Highwood factored (sold) trade receivables with a book value of
$10 million to Easyfinance. Highwood received an immediate payment of $8.7 million
and will pay Easyfinance 2% per month on any uncollected balances. Any of the
factored receivables outstanding after six months will be refunded to Easyfinance.
Highwood has derecognised the receivables and charged $1.3 million to
administrative expenses. If Highwood had not factored these receivables it would
have made an allowance of $600,000 against them.

How should we Account this adjustment in Sopl and Sofp?

[Author]

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