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I’d say the following topics:
– discounting, NPV, IRR
– WACC
– Shares-related calculations
– and all these interest rate risk calculationsOh, page 170…(you know, right, that all books are different? different years, pdf files and etc. So it’s better to give more information next time where you get some particular extract from).
__So, the reason of this is because this is how disclosure should look like. It’s not some kind of action to your tasks/problems that are needed to be solved, but it just how companies present information in their disclosure notes in the FS.
https://www.ifrs.org/content/dam/ifrs/about-us/funding/2021/ifrs-annual-report-2021.pdfIt depends on the type of managers. If we assume that managers are permanent staff members, and their salary depends on the amount of customers/orders and etc., then it seems like these costs are purely variable costs. Then it would be more appropriate to treat managers salaries as semi-variable costs.
Stepped costs – clearly this is a wrong answer. The stepped costs – a type of fixed cost that is only fixed within certain levels of activity.
But my best guess, fixed costs. If we’re talking about managers in common sense (not sales managers and etc.), people who are responsible for making decisions, then fixed costs would be the most appropriate measure, as they’re making decisions, and their salary doesn’t depend on the amount of units produced (as they’re not doing it). Their bonus might depend on different measurements, but this is not an actual salary.
Managers are usually permanent members of staff who are paid for the full year regardless of their working hours.I’m not a tutor, but I have a tip for you. Start studying in advance, and then you won’t be worried 🙂
And just out of curiosity, what are other “so many concepts” (single entity and…)?*based on my experience, without watching lectures or reading study books, it’s hard to follow the logic & workflow given in the answers. Sometimes, I’m struggling even if I read a study book and watched a lecture. I can’t even imagine doing a revision part without studying at all….
The question sounds interesting, but just mentioning C,Q29 BPP you’re leaving us with no chance of finding the problem/question you’re talking about
You shouldn’t think this way “if it wasn’t depreciated and no capital allowances are available”, then “there is no DTL”.
Because even though a DTL can arise from depreciation – this is just one of many examples, when DTL arises. So, it doesn’t exclude any other cases.You should follow this guidance: “Deferred tax should be recognised on revaluation gains…”. See Application of scenarios right before “test your understanding 2”
(also, you can read further IFRS 12, when deferred taxes arise from revalued non-depreciable assets)
So, your journal entries would be
1. To recognise gain on the land revaluation
Dr Land XX
Cr Reval surplus XX
And then recognise the associated deferred tax:
Dr Reval surplus XX x 25%
Cr Deferred tax XX x 25%Hi Lusine,
I’m not a tutor, but I can add a few points from my side.
If the loan was written off because of the ECL assessment in the previous year, you can use as a guide IFRS 9.
(Paragraph 5.5.8 of IFRS 9 requires an entity to recognise in profit or loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised in accordance with this Standard.)It also depends on the fact was it Stage 3,2 or 1 (again if it was written-off due to the ECL assessment). If it was written off in full, that was probably stage 3, then if you received a partial payment, then the ECL should still be recognised, however, you can change the assessment and move to Stage 2.
Also, take a look at “IFRS Interpretations Committee Meeting” regarding IFRS 9On 1 June 20X6, Pelmer Co disposed of its shareholding for $1,500,000. At that date, Symta Co’s statement of financial position showed net assets with a carrying amount of $660,000.
The value of the brand name…. has not changed since acquisition.Gain in the consolidated FS of PL
Sale proceed 1,500
Less:
– Net assets disposed (710) (=660+50)
– Goodwill (290)
– Less: NCI at disposal 200 (should be +, because less x2)
Gain (total of the above) 700Correct answer 700.
Part 2.
2. NCI at disposal
NCI at acq 150 (as given , see part 1)
NCI x post acq reserves 50 (=20%*(660-410) (net assets at disposal-net assets at acq)x %NCI share
Total: 200Per my understanding it should be like this:
Part 1.
Pelmer Co acquired 80%…. for $600,000 when the net assets of Symta Co were $410,000.
In addition to its net assets, Symta Co had a brand name valued at $50,000 which was recognised on acquisition.
The fair value of the non-controlling interests in Symta Co at acquisition was $150,000.1. Goodwill calculation
FV of P’s investment 600 (as given)
FV of NCI at acq 150 (as given)
FV of sub’s net assets at acq (410) (as given)
FV adj (50) (as given)
_______________
Goodwill (total of the above) 290You’re right they made a few mistakes (starting from Goodwill calculation, and even in a simple equation 660+50 instead of 700, they have 710.
Perfect, thank you!
I was using study notes + ACCA website examples + UK gov tax websiteHm, not sure if I understand it, but could you please confirm if the following (below) is correct or not?
So following your advise,
“6.1 Where an asset is used by the owner of the business (this can be either a sole trader or a partner in a partnership) partly for business and partly for private purposes (typically a motor car), only the business proportion of the available capital allowances is given.
d. Private use by an employee of an asset owned by the business (again typically a car) has no effect on the business’s entitlement to capital allowances”Case 1. Motor car (CO2 emissions are 170 g/km) used by Wendy – 60% business use 14,800
Case 2. Motor car (CO2 emissions are 105 g/km) used privately by employee – 20% 10,400
*”Wendy commenced in self-employment” – so it means that Wendy is the ownerMy logic after reading the above paragraphs:
Case 1: Wendy is the owner, so should be calculated only 60% in allowances
Case 2: not the owner, but just an employee , so it should in accordance with the “d”-part, so 100% in allowancesI got it 🙂 can’t delete this question, so please just ignore it
There was another rule (about being automatically resident), that wasn’t mentioned in the book
I haven’t watched any webcasts, but i’m telling from my own experience
I didn’t have anything like this during my exam “a piece of software called scatchpad which would be provided during the exam”
I had FA in January 2021 with Proctoro, and it was allowed to have 2 pieces of paper on the table.2. If dividend is declared before the period end(does this period means accounting period or reporting period) . where will be it disclosed under statement of financial position or statement of equity change
Answer: if they’re only declared (not paid), then only in Disclosures
If paid, then you will see it in the Statement of Cash flow, in SOCI, in Disclosures and obviously you will have effect on the Statement of Financial Position (since total of SOCI should be equal to “Equity” line in the statement of financial position)works is there any build-in calculator — there is no any calculator there
or notes to make, – you can have 2 pieces of clean paper , you will need to show them that they’re clean
I’m allowed to have my own calculator – yes, you’re allowed to have your own calculator.
On you table you will have ONLY 2 pieces of paper, a pen, a calculator.
That’s it
