[stepstothebest]

Hello Sir,

I am talking about ONE ENERGY PLC question

the question requires me to show the clear sign that the company was in difficulty and do further investigation using financial information.

ONE ENERGY PLC Purchased the software from RiteSoftware co, but the company became bankrupt so no longer to get the further service from the company.

so above calculation is one of the investigation that we could have done before purchasing the software from Rite co.

the below is the report for Rite co.

2018

cos 2600
payable 257

2017

cos 2300
payable 178

so through the payable days investigation,

i can’t see any “cash drain for the biz removing the opportunity to fund some internal investment from internally generated funds”

more payable means more cash flow, but why answer sheet states that “cash drain”?

that’s my question sir.

thank you

[stepstothebest]

what’s more, for debtor days and inventory days, what figure must be used?

just use expense excluding net finance costs?

[stepstothebest]

Could you please teach me how to deal with the different year ended annual reports of two comparable companies? Such as the year ended of the one company June 2017 and the other one year ended Dec 2017.

My mentor said I have to prepare the whole quarters of the company which has the year ended Dec 2017, as my main company’s year ended is June.
He doesn’t reply to my questions in 6 hours and i feel so stuffy.

the recent 3 years information is compulsory, so it means I need to make each of the 12 quarters’ SOCI and SOFP?

[stepstothebest]

I charge my power from you guys words.

God illuminates every you guys’ steps and we will finally light up the night !!!!

[stepstothebest]

I’ll leave the whole question. sir.

Which of the following statements is true of a scrip issue with perfect information?

1. Decreases earning per share
2. Decreases the debt/equity ratio of the company.(calculated on a market value basis)
3. Increases individual shareholder wealth.
4. Increases the market price of the share.

Answer: 1.

i have no doubt for the answer “1”

but in the answer sheet, it is written that

The debt/equity value on a nominal value basis would fall but as the total market value of the shares will be unaffected, the market value gearing would be unaffected.

what do they mean by ” the debt /equity value on a nominal value basis would fall”?

This is the question referring to a scrip issue other than scrip dividend sir.

sorry for the lack of knowledge to understand your kind explanation. sir.

[stepstothebest]

Sir it would be okay to continue to use it for the exam on March 2018?

[stepstothebest]

Sir, the question i asked you yesterday is listed on Kaplan revision kit 59 page 198Q in the recent version. i know you don’t have one and there is no reference to the released year.
I think we must use nominal value but they didn’t hopefully i could meet other question to settle this.

2009~2010 University majoring in Environmental Engineering.
2010~2013 Mandatory military obligation in Korea.
2013~2014 study English and get IELTS 6 in the Phillippines
2014~2015 Kaplan University in Singapore but dropped out
2015~2016 passed F1,2,3,4,6
2017 got IELTS 7 and passed F9

now i’m 27 years old next year i will be 28.

As matter of fact, the question which i’m conveying to you now is not related to the subject matter. Nowadays i am trying to look for a job in Singapore and Malaysia mainly, but the demand for foreign accountants are decreasing. The nations try to encourage foreign students to go back to their home as long as at least they don’t have several years job experience cuz locals are struggling for getting a job ,so they don’t allow the jobs for freshmen to students come from overseas.

Moreover, cuz of Visa problems, many Korean students have no choice to register LSBF school to extend their period to stay in Singapore. However, i studied in LSBF Singapore for 2 years while having course, i got serious illness on my stomach, so i went back to Korea. for around 2 years and a half, i passed F1,2,3,4,5,6,9 and got the IELTS 7.0 to opt for OBU degree. You native speaker has no idea how hard this journey, but for me, this journey has kept testing my patience and the huge amount of money for this.

I applied to several companies to find out the internship in all over the world like Singapore, Malaysia and the Phillippines, but i didn’t get any other positive answers.
but i got one call from Singapore and the HR guy said ” do you have a permanent residence? ” i said ” no ” and he hung up the phone. Based on the call, the problem is that i don’t have the legal visa to stay in the countries where i can gather job experience.
Unfortunately, in South Korea, the law doesn’t accept ACCA regulation in the accounting industry, so i can’t get the experience here either.

Finally, i found the way to get job experience but it’s a rather dangerous way…. i’m already 27 years old, so it’s not a time to get adventures. That’s why every steps i get should be carefully taken. the regulation of Visa between South Korea and UK can give me 2 years working visa with IETLS score above 5, so young people of age below 29 years old can apply to this Visa and get it, but most of the people who did this, would find miserable jobs like blue colour jobs: farmers, construction workers, coffee makers, store staffs and so on. However, i must get a job names intern or junior accountant in local companies in UK.

Honestly, i’m really afraid of going there cuz of the pervasive racists. Moreover, i haven’t had the experience to talk to real white and black cuz in Singapore, the locals are Asians there were very few white and black.

i don’t have any other persons who can advise me on my future journey.
You might be really upset for the fact that i ask you irrelevant questions on this page, but
Sir.. please understand me. most of my friends who start this journey with me have left this industry with a lot failures, but i don’t want to give up cuz i ‘ve walk on this load for my half of my twenties. without this, there is nothing left.

i beg that you understand my position and advise me what i should do.

please don’t feel the unnecessary burden as you advise me, cuz i know all the choices that i would make are my responsibility, not you. i swear you would not be blamed for this.

could you advise me in cruel and objective views like an auditor

[stepstothebest]

Hello guys.

According to what i read on some comments, one of the people said OBU grade is assessed by the first attempt score, whether you fail or not.

Is it true?

so under that theory, on assumption that a student was absent in sitting the exam that is one of the appraised exams like F456789, this guy would get zero mark in that absent subject?

if it is true, it would be pathetic…

The ACCA average mark will be calculated by taking the numerical average of the marks achieved in the Fundamentals Skills papers (F4–F9) that you have sat and passed.

above is one of the written posts by OBU degree pdf contents.

I think the score which they use to generate the average score is based on passed exams….

[stepstothebest]

I think…. i dont know the difference between revaluation surplus and revaluation gain …..sir

[stepstothebest]

Sir in terms of investment properties,
Should i know both methods called Cost model and Fair value model?

[stepstothebest]

so much appreciate your answer, Mike. Now I realize what the mistake is.
if i could post the photo that shows the question of my textbook on this forum, it would be easy to let you know….

I’ll jot down all figures relevant to the investment account in the question.

Notes:

Current asset investment:
the current asset investment is an investment in 30 days government bonds.

SOFP
Current Asset…………2007……….2006
Investments…………….95……………20

so the answer is below

Cash flows from investing activities.
Sale proceeds of tangible non-current assets..21
Purchases of tangible non-current assets……..(106)
Investment income received…………………….3
Government grants received……………………….50

just to be sure, i write down all the options in the investing activities.

other than them, there is nothing about the investment account factors.
i know the investment income received is not relevant now, so got rid of it.

Honestly, that’s all on the answer sheet.

many thanks Sir

[stepstothebest]

Sir i’m sure that you recognize I am not a native speaker, so i try to get used to reading and

dealing with the question as much as possible to reduce the number of mistakes.

One of my habit is to make an entry to figure out the collect number like payment or cash received, but in this case, i’m not accustomed to it , because it just appears on SOCI.

In question, there is no information related to Subsidiary or associates. just i assumed by myself that the investment would have used to integrate Subsidiary.

the only information they give me is below

SOFP as at 31 May.
Current asset:…………….2007………..2006
investments…………………..95……………20

SOCI
Profit from operations………………..67
Finance cost……………………………(17)
Investment income……………………..3

and the answer is below

Cash flow.
Cash flows from investing activities.
investment income received………………….3

so i’m afraid that i would do the same mistake as i might do in the real test.

sometimes, the meaning of the words are ambiguous… i can’t decide whether i must make an entry or not in order to get the collect figure.

i make entries to get interest received and dividend received, but why not to make an entry to get investment income received?

what is the difference between the way to get interest received and they way to get investment income received? ha….

help me Sir

thank you for your kind help
could you possibly advise me

Regard
your student

could you possibly advise me

[stepstothebest]

I really appreciate your invaluable answer ;).i fully understand.

Sir….I have other question. so sorry to keep asking on weekends.

I don’t mind that you reply to my answer tomorrow.

please see below.

SOFP as at 31 May.
Current asset:…………….2007………..2006
investments…………………..95……………20

SOCI
Profit from operations………………..67
Finance cost……………………………(17)
Investment income……………………..3

Cash flow.
Cash flows from investing activities.
investment income received………………….3

the question is that in my understanding, until Reconciliation namely Cash from operation, we don’t need to make T entries to figure out how much they actually pay for Govenrnment grant income, Finance cost and so on. However, after operational activities, we must make entries to get the payment on each entry.

so if i apply this thought to the investment entry,
b/f …….20
invest….3
C/f……..95
balance 72 on Debit side.

but the answer sheet tells me just 3.

i’ve already listened to your lectures regarding Goodwill and many stuff, but most likely my knowledge is blurred.

so could you possibly tell me why they just get 3 instead of 72 balance please?

i know the fact that investments on Current asset were used to get subsidiary and so forth….

many thanks ^^

Regard
your student.

[stepstothebest]

when people fail their exams, they don’t take part in the research. That’s why it seems like opentuition students look really successful. At any rate, i passed.

[stepstothebest]

u are really brave not to give up this subject
u would be the accountant eventually.
good luck to your steps peace

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