[stubarny]

Thank you John 🙂

[stubarny]

Hi John,

It’s from BPP’s revision pack so I think it’s a copyright issue if I put the whole question up?

If I just use ACCA’s publically published past papers and solutions from December 2010 to December 2012 do you think that would be OK? Has the sylubus changed much?

Thanks,

Stu

[stubarny]

Thank you John 🙂

In Step 5 / Working 1, please could you explain why the future’s sale price is assumed to be 0.6978 (the June forward’s buy price at 1/1.433)? (i.e. why isn’t it still 0.6964 which it was at the end of April?)

Thanks,

Stu

[stubarny]

Great, thank you John 🙂

Please could you explain why the forwards have a spread whilst the futures contracts are have a single price? I thought futures were exchange based whereas forwards are direct contracts so wouldn’t have a spread?

Thanks,

Stu

[stubarny]

Ahh thank you a penny’s dropped on my head! And I assume the loan note liability is not reversed because the owners of the loan note are now outside the consolidated group.

Thank you

[stubarny]

ahhh, so it was ‘in substance’ still in inventory in year q1 so the “purchases” and “inventory adjustment” cancel out to zero in year 1. Thank you!

[stubarny]

sorry I’ll try that again – the 800 under provision has been reflected in the income statement and persumably has been paid in the current year (or absorbed into “deferred tax”?) leaving no seperate liability on the balance sheet? is this correct?

[stubarny]

It says “Fresco’s income tax calculation for the year ended 31 March 2012 shows a tax refund of $2.4 million”

so I assume the 800 under provision from last year is relevent to this year’s income tax calculation but has already been included as part of the $2.4 million, so I don’t make any adjustments? is this correct?

Edit – sorry I think my answer above is wrong because the income statement is showing the $800 and $2.4 million seperately.

[stubarny]

No I’m not sure, I was assuming hainam8x is correct. There is 800 for consolidated “total other comprehensive income for the year”, could this be relevent?

But the answer describes the 800 as “consideration” which suggests it is related to the purchase of the subsidiary?

[stubarny]

Thank you but sorry I don’t understand. The $800 of loans notes was part of the consideration for the purchase of a subsidiary. Why are we now making adjustments for “available-for-sale-investments”?

[stubarny]

Hi Mike, I’ve watched the video but I think it focuses on the income statement?

I think your answer above refers to the income statement calculation of current tax?:
2400 + 200 (change in deferred tax) – 800 (under provision of tax from previous year)

But the statement of financial position just shows a value of 2400 for the current tax. I am wondering why the previous year’s under/over provision of tax has no effect on the current tax on the statement of financial position?

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