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Sorry as it don’t clearly.
Q1: their answer is Group RE will be reduced 160000
their calculation: interest =10mil*0.08=400000
saving of interest is 400000*0.6=240000
s0 reduced in group RE 160000
But
I think group RE will be reduced by 400000*0.6=240000 🙁
Q2: the revaluation in building is 1000000, not 3000000?
am I wrong to calculate RR=(22-20)+(23-22)=3?I don’t understand this entry. How about the sale of asset and deferred profit?
The entry of this case is : DR Cash(proceeds) / CR asset (CV) and CR deferred income. What is entry to amotised deferred income each year?
For example, if we sale asset with 200$ and it has CV 150$ and lease back with 5 yrs.
The entry is : Dr cash 200/ Cr asset 150 and Cr deferred income 50
Each year we allocated deferred income by : Dr Deferred income 10/ CR RE 10. Am I right?I have learned about ” Speculate” meaning on the internet, but I still don’t understand what it is. Could you please explain this term for me?
I want to check again :
It mean when we buy good if there is a cash discount,we need a period time to know whether customer payment in early to get cash discount. So we don’t deduct this amount in receivable until customer payment , that why cash discount is finance expense?I’m still not clear. I copied the right answer. This is Q5b June 2013 question .
I wonder why gain in revaluation of B go to P/L ? It should be revaluation surplus under IAS 16 ?I’m sorry.
This is A question:
(b) Speculate owns the following properties at 1 April 2012:
Property A: An office building used by Speculate for administrative purposes with a depreciated historical cost of $2 million. At 1 April 2012 it had a remaining life of 20 years. After a reorganisation on 1 October 2012, the property was let to a third party and reclassified as an investment property applying Speculate’s policy of the fair value model. An independent valuer assessed the property to have a fair value of $2•3 million at 1 October 2012, which had risen to $2•34 million at 31 March 2013.
Property B: Another office building sub-let to a subsidiary of Speculate. At 1 April 2012, it had a fair value of $1•5 million which had risen to $1•65 million at 31 March 2013.
Required:
Prepare extracts from Speculate’s entity statement of profit or loss and other
comprehensive income and statement of financial position for the year ended 31 March 2013 in respect of the above properties. In the case of property B only, state how it would be classified in Speculate’s consolidated statement of financial position.
Note: Ignore deferred tax.Answer:
Statement of PL:
Gain on IP: A: 2340-2300 =40
B: 1650-1500 =150
OCI: (as below) =350
Statement of FP:
IP (A+B) 2340 + 1650
Equity :
Revaluation reserve (2300-(2000-50))= 350I don’t understand why treatment B as IP ? it’s asset of group, use by Someone in group so it should be under IAS 16?
and A at 1 oct 2012 reclassed as IP so before that day we should treatment under IAS 16? That’s why we have Revaluation reserve of A?
Please explain it for me,
Thank you very much ?As the tuition at class is very expensive, Opentuition is the useful resource to learn ACCA. I have started to learn from F2 paper, All tutors of OT are very enthusiasm. I introduced it to many my friends.
Thank you for all your significant contribution to the world. 🙂
P/s: My english skill is not enough well to express my gratitude. 😀It’s very helpful for me.
Thank you for your enthusiasm to answer all my questions.
You’re very wonderful. 🙂I don’t understand the logic behind final step. The double entry is :
Dr I/S 300
Dr RR 175
Cr PPE 475
I think Dr RR 200 to reverse RR of previous period and then the remaining amount to Dr I/s ?Hi jigsaw1992,
I have the same problem, how should I do? I just sent ACCA team in “contact us” entry on ACCA website. Is this right way? How long will they answer for you? I need to login to payment for the exam in June.
Thank you.
When I read BPP book I am confused with these terms. I will watch all the lectures.
Your website is very useful for me.
Thank you very much 🙂 .