[vinogradovaa]

Thanks for the answer.

Regards

[vinogradovaa]

It is the question from Earnings per share section from Test Index/Practice questions for FR

Iti is worrying, because bonus issue is calculated, say 1 for three you divide by three, not multiply by four.

Thanks

regards.

[vinogradovaa]

yes, absolutely, thanks.

[vinogradovaa]

it still does not clarify my question. If we need to separate the profit and loss of discontinued operation, why then example 1 chapter 4 opentuition 17-18 gives an overall result as follows:

years 09 08
640 480
(260) (215)
380 265
(60) (48)
(87) (56)
233 161
(3) (1)
230 160

here both profit and losses of continued and discontinued operations are combined and the overall result is shown as if it has absorbed the losses of discontinued operations. Whereas the standard requires to show the results of discontinued operations separately?

What technique is advisable by you?

[vinogradovaa]

yes it does, but what about the final result? For example a huge of loss of 143 and modest profit of 4 continued operations, as I mentioned an example from Kaplan book, is netted off to present a loss of 139. This is an answer from the text book. But looking at the examples from Open tuition, the profit of continued operation is not affected by loss of discontinued. Is it how should the answer be in the exam?

thanks.

[vinogradovaa]

@vinogradovaa said:
I have an old text book, and there is a question in the chapter for “Cash flow statements”, which is saying “The fleet original cost 42 mio, which was written down ot 11 mio. was replaced with the cost of 180 mio. and trade in was given 14 mio. The company also acqired a new plant for 120 mio. Some of the old assets were revalued to 170 mio. The opening value on the non current assets account is 1830 and closing 2480. Depreciation figure and balancing figure is not known.

In the solution. The non current asset cost is debited with Rev. amount of 170, then part-exchange of 14 mio, then new acqisition of 120. mio. there is a credit of book value of asset of 11 mio. As a balancing figure is given 723 for cash given for assets and depreciation of 366 on credit side.

How were both 723 and 366 figured out?

sorry I have overseen that 366 is from cost of sales and it solves the question. as 723 is a balancing figure. :}}}}

Regards

thanks.

[vinogradovaa]

I am sorry but usually we proceed from left to right, let standard chairs be x and executive be y. If it is from left to right, then the decision will be different. There is a difference in contribution of 15.

[vinogradovaa]

thanks for that, but what is the value of perfect information, if perfect information does not change the decision?

Thanks.

[vinogradovaa]

Sorry for that, the price per ticket is 25 per person, this is added to the contribution of 3 per person.

Thanks.

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