[zulfi245]

Rent payable/ Rent recievable under operating lease , they look like same as trading recievable/payable which qualifies for ias 32 financial asset/liability .please guide me

[zulfi245]

Can’t find option to delete it.consider it deleted. i will post one question per thread.

Thanks a lot

[zulfi245]

with regards to 1:(no business combination)

Contingently Issuable Ordinary Shares
https://definedterm.com/contingently_issuable_ordinary_shares

If share issue is contingent upon future event, question arises whether to recognise it or not. if not would there be basis?

(or there is a prescription for exam ,so i could deal with any contingency related issue that doesnot relate to ias -37)

[zulfi245]

Co issues shares with option to shareholders that they can sell the shares back to company after 3 years. Shares+put option [Puttable instrument] .

its a financial liability or compound instrument?

[zulfi245]

Explaining above:
ias 37 applies to post acquisition changes in fair value of contingent consideration but would it be limited to just measurement and a contingent consideration (even remote) will still be in accounts according to the measurement rules of ias 37 (provision rules or contingent liability rules?)

[zulfi245]

A)Basis:
As soon we bought the asset we must have been obliged to do inspection and if we could AVOID it that should not be part of asset .right?

if we can’t avoid it , it must be liability like dismantling?

it seems like inspection is not an obligation from ias 16 perspective and it is an exception to other Expenses not capitalised.so is it a exception or there is a basis to capitalise it and not even providing provision?

B)Treatment:
for ist year inspection depreciation,we don’t incur inspection cost actually until the inspection day comes and so we take part of cost of asset that could be attributed to inspection ? and for other years actual inspection cost incurred?

[zulfi245]

Sorry sir, to answer it in Ask tutor forum (i hope you see my intention here):

@Clairr:
1-I copied exam tips from prize winners in one word file and applied that in preparation .

2-Intelligent arguments and implications:
Don’t try to learn insignificant advantages or disadvantages ,you must be able to discuss the MOST important element(s) ; in a exam question scenario
eg: ROCE vs RI. What would be the most important difference in the Mechanism of these and Implication on company (not general company- Company in scenario)

Eg: you can’t tell a client who came to you for advice that RI is not understandable by managers normally (unless question states manager under- qualification as an important problem )

3-F5 dont hesitate to revise risk and uncertainity,operational and planning variance,ABC,Transfer Pricing

4-Be a consultant advisor helping that company not a candidate giving p5 exam.

5- Be relevant to question at what you write.Does that really apply to this company?

6- You have to attempt all parts,when its the last question and you are short of time you have to fill all 3 parts of that question with Most important points but note that you have to go through question scenario before making points ( in p5 , relavant to scenario is MUST)

7-if you are short of time, you should go for theoretical part ist rather than calculation (unless you are sure you can do it very quickly).

8-Do these models Value chain,BCG matrix,Porter forces and other models but think from p5 perspective( you will understand by the time what is p5 perspective).

9- Understand the difference between performance measurement and Performance Management

10- Others:
-Read as much articles as you can. Download atleast 2 latest examiner reports.
-From websites you can have understanding (NOT ROTE LEARNING) of how to measure different terms for eg:
Brand loyalty,Brand Awareness Etc ,allocate a page of it on register.

if you will successfully grasp essence of p5 and apply that in your real life before exam sooner the better (eg: critical analysis,implications in future of anything ) you will perform better in exam too.

Go Solve Problems in exam !!!

Hope it helps

[zulfi245]

Q-3: if convertible debt is given to supplier of goods/services then it should be treated under ifrs-2 (because it is for Goods/services not for cash/financial asset ), with two portions equity settled and liability settled.right?

[zulfi245]

Q2-
Entity needs to pay i) FIXED own equity instruments or ii) Cash based on FIXED equity instrument could be sharebased payment ifrs 2 or equity instrument under ias 32.

but if those i) fixed own equity instruments or ii) cash based on fixed own equity instrument were in exchange of Cash or another financial asset (instead of goods and services) , then this transaction would be financial INSTRUMENT under ias 32.

IN that case , cash based will be financial liabilty and equity based will be equity instrument.
However equity based for variable cash will still be financial liabilty as failing “fixed for fixed”
am i getting right?

[zulfi245]

10- Others:
-Read as much articles as you can. Download atleast 2 latest examiner reports.
-From websites you can have understanding (NOT ROTE LEARNING) of how to measure different terms for eg:
Brand loyalty,Brand Awareness Etc ,allocate a page of it on register (notes).

[zulfi245]

7-if you are short of time, you should go for theoretical part ist rather than calculation (unless you are sure you can do it very quickly).
8-Do these models Value chain,BCG matrix,Porter forces and other models but think from p5 perspective( you will understand by the time what is p5 perspective).
9- Understand the difference between performance measurement and Performance Management

[zulfi245]

1-I copied exam tips from prize winners in one word file and applied that in preparation .

2-Intelligent arguments and implications:
Don’t try to learn insignificant advantages or disadvantages ,you must be able to discuss the MOST important element(s) ; in a exam question scenario
eg: ROCE vs RI. What would be the most important difference in the Mechanism of these and Implication on company (not general company- Company in scenario)
Eg: you can’t tell a client who came to you for advice that RI is not understandable by managers normally (unless question states manager under- qualification as an important problem )

3-F5 dont hesitate to revise risk and uncertainity,operational and planning variance,ABC,Transfer Pricing
4-Be a consultant advisor helping that company not a candidate giving p5 exam.

5- Be relevant to question at what you write.Does that really apply to this company?
6- You have to attempt all parts,when its the last question and you are short of time you have to fill all 3 parts of that question with Most important points but note that you have to go through question scenario before making points ( in p5 , relavant to scenario is MUST)

[zulfi245]

Clairr can you reach me at email address: born4acca @ hotmail . com

[zulfi245]

For 3, when you say reverse out the provision ,it means through P/L or Asset?
(Dr Provision Cr Asset OR Dr Provision Cr P/L)

Thanks

[zulfi245]

Patents and Trademark or other similar intangible assets seems to satisfy “right to recieve cash” how do we distinguish in that case?

[zulfi245]

OK when bochem (subsidiary) acquired ceram (sub- subsidiary) we use fv of NCI of ceram ATTRIBUTABLE to ASHANTI ( parent).

But when we dispose Ceram ,to calculate gain/loss we are given in question fair value NCI of ceram ATTRIBUTABLE to BOCHEM.

So why not use use the same NCI of ceram attributable to Ashanti while disposing.

Hope I am better at clarifying query.

[zulfi245]

Gain on revaluation of PPE (F7)
And losses too , right?
( except revaluation reserve is zero,in that case p/l)

[zulfi245]

We gave x number of shares for (six month hair cut service contract) .
a) So i believe we pre-paid for 6 months upcoming. and b) as shares are given at day 1 ,we should credit equity in full. No?

[zulfi245]

A research which was initiated for company A but during research it was bought by Company B (entity in question).As it is purchased it should be capitalised right?

[zulfi245]

PBIT? Ok.

[zulfi245]

^ Please:) (at your ease or earliest)

[zulfi245]

Case 1:

if B had an intermediate market to buy for 21 and Division A selling for 22

NMR= 20

Division B would not buy it from either .Transfer Price should be maximum 20 i.e NMR .

Case 2:
Offer for 22 , Division A selling for 21

NMR= 20

Division B would buy from outside. Transfer Price should be max 20.

In ANY case (not only above 2 cases) offer from market to buy intermediate product is not affecting transfer price max or min range.Right?

Trying to make up rule here !

[zulfi245]

Amazing Thanks ,that really increased imagination.

[zulfi245]

Nevermind, i read it somewhere and asked directly now forgot the source.
Thanks

[zulfi245]

Thanks..

For part b i am still curious how it concluded that 28% was standing for 1.5 hours( how to calculate that 1.5 hours).

[Author]

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