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310 BPP revision Kit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › 310 BPP revision Kit

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by P2-D2.
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  • August 26, 2020 at 9:42 am #582059
    Aleksandra19900107
    Member
    • Topics: 10
    • Replies: 9
    • ☆

    Hello Sir,

    in this task the answer presumes that Loss on FV of investment in equity accrues evenly and should be pro-rated. How can this happen in reality?

    My idea was that this together with gain on revaluation arises at a point of time and should not be pro-rated (once FV is determined).

    Thank you in advance!

    August 29, 2020 at 10:06 am #582613
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6440
    • ☆☆☆☆☆

    Hi,

    Presumably it says that all profits/losses accrue evenly during the year within the question. What you say is correct but if we’re told otherwise then we must follow the information given.

    Thanks

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