[ty0311]

Thank you so much for providing the example, this is very clear to me now.

[ty0311]

Hi Sir,

Thanks but am still a bit confused why the recycling is of gain attributable to NCI only.

So following the example, the exchange loss of $28.6M is reported under Group OCI. Assuming no further exchange gain / loss, if the subsidiary gets sold , then we would debit this 28.6M to SPL under the Recycling concept. However, this 28.6M is not fully attributable to the Parent (as it only has 80% share). So should we not recycle only the Parent’s portion of the 28.6M to SPL?

Thanks again in advance!

[ty0311]

Hi Sir,

Looking at your response makes me realize I actually answered my own question regarding to the tax saving impact being taken into account of in the cost of debt !

Thanks also for the second part of your guidance.
You solve my confusion and really make my day!! =)

Much appreciated!

Tim

[ty0311]

I passed with 54%. I failed twice before (1st attempt 43 / 2nd attempt 39) and finally got it this time round! Thank you sir Ken Garret and Open Tuition. My advice is to really do the past papers and review the answers to see how you can get marks.

[ty0311]

I worked out the issue myself but thank you anyways =)

[ty0311]

Thanks for the guidance. Does this mean the c/f balance of the Financial Liability to show on the SFP at the end of the first year would be $10m + (10m*0.05) – $1m = $9.5m?

By doing this, I wouldn’t be able to end up at Nil value at the end of the 10 years’ lease.

Thanks again.

Regards,
Tim

[ty0311]

Apologies, I mean the notes then say there is an issue of 600,000 shares on 1 Jan 20X8

[ty0311]

Thank you for the explanation sir.

So as we credit retained earnings and debit revaluation surplus by the same amount (of $5,000 in your example), does it also mean that the net impact of this transfer for the excess depreciation to the total equity is 0? And if this is correct, then can I assume that this is the reason why it is not a requirement for companies to report their SOCE with this line?

Thanks again!

Regards,
Tim

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