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I have the same understanding problem. I would be very grateful if somebody could answer Kateker’s session.
Thanks a lot. But one thing is not clear yet to me: If all these conditions are met, can I choose to capitalise these development costs or am I obliged to capitalise them?
Thanks for the answer. I understand this reasoning. But, based on your reasoning, why has the interest from 1st Oct.2007 to 31 March 2008 been accrued then? If we’d win the lottery on 1Oct 2007 and pay the lessor immediately, we also wouldn’t have accrued the interest from 1st Oct 2007 to 31 March 2008, either. I would appreciate if you could clarify again which interest I have to include in the calculation of the current and non-current part of obligations. Thanks a lot.
I read it in the BPP study book for this year. It says:
“Public offer: where members of the public subscribe for shares directly to the company.”
“Offer for sale: an offer to members of the public to apply for shares based on information in a prospectus.”Why does the non-current lease obligation at 30.9.X7 not include the accrued interest for the six months between 1.4.X8 and 30.9.X8? I had expected that the non-current lease obligation at 30.09.X7 is equal to the total lease obligation at 30.09.X8 which should include further accrued interest of 8,750 = (175,000 * 10%*6/12). Thanks for the answer.