[Stevo]

Ritaalbu, I make all the corrections in q31 for disposal (i) like you did with one exception – loss on disposal I presented separately.
But can you please tell me why should we account for (ii) and (iii)? Those transactions are fictive, never really happened during a year. I can’t remember whether anywhere in question we were asked clearly to state our opinion on acquisition… If we were asked, then I think you are right. 🙂 (ii) and (iii) are only RELEVANT costs for decision of potential acquierer about whether to acquire or not… and one more thing, relevant costs are not within of scope of F7 syllabus… why should examiners ask us to account them for in this paper? These relevant costs were already tested in f5. They are only a management accounting issue. In F7 it should be dealt only with consequences of transactions that really affected accounts. So, I saw these (ii) and (iii) as a trick in question.

Please for all of you lads/guys to share your opinion on this topic.

I am quite confident that I have to be right. If I am not right, if we really needed to account these (ii) and (iii) costs which actually hadn’t been incurred in this year end P&L statement then must be:
1) that F7 paper doesn’t have a sense or
2) I should quit acca. 🙂

Thanks,

Stevo

[Stevo]

Hi,

Question 31 – I disregarded additional notes (ii) and (iii) related to management fees and rent because in P&L because there’s no acquisition transaction yet. During a year a potential purchaser only considered a purchse but it hadn’t occur.
I just added a line for discontinued operation profit and loss on disposal.

Anyone else did that like me? 🙂

Thanks,

Stevo

[Author]

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