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But then what are the benefits to the company who has guaranteed the overdraft of another company? What is this type of service called?
So if I wanted to calculate this using T-accounts instead, would these be the correct entries for the P/L account?
Dr. Opening inventory a/c $8’200
Dr. Heating Bill a/c $34’200Cr. Closing Inventory a/c $9’300
Cr. P/L Statement $33’100Many thanks.
But why is the gain on revaluation not realised, whereas the excess depreciation is?
Why is it treated differently to the gain on revaluation and not transferred to ‘capital’ in the SFP?
Q1) ‘The profit/ losses from the sale of non-current assets are included in the statement of profit or loss of a business, for the accounting period in which the sale takes place.’
Under which heading would the profit/ loss from sale fall under in the Statement of Profit/Loss?Q2) Going back to what you said about the profit/ loss from the sale of an asset appearing the the SFP. Does it appear under the cost of the asset (as with depreciation)?
E.g. :$ $
Asset at cost 5’000
Capital Income (profit) 2’000How then would the carrying amount be reduced to $0?
Thank you!
Could you please explain why we do not calculate the allowance for receivables as :($40’000 – $8’000) * 2.5% (after deducting the irrecoverable debt)
Thank you.
But drafting disclosure notes for NCAs is part of the F3 syllabus?
Also referring back to the sentence, I don’t understand your explanation. If a NCA is classified as an expense, then it shouldn’t be amortised. So how can it state ‘which heading in the Statement of profit or loss the amortisation is included’?
And when reconciling the carrying amount in the Disclosure Note, is the cost at the end of the period (which includes the additions, disposals etc) brought forward when reconciling the carrying amount for the next year?
Thank you!
On the same topic of disclosure notes, could you please also explain what this means:
‘Financial statements should also include the line item(s) of the statement of P/L in which any amortisation of intangible assets is included.’
Thank you.