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See BPP exam kits the answers of number 81 Pinto, see the Income from Investment property where does this come from: (60-20) ???
2. the dividend paid where does 5 come from why has he multiply by 5 ???PLEASE REPLY
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step-1 )find the no. of shares at year end.. using parv value..(1000/0.20 cents)step-2)Dididend is 0.03 cents per share PAID on 1st-Jan-o8…….(shares at 31-march-2008= 1000sh /0.20c (parvalue/share) *0.03/share = 150 (‘000) paid this yr..
2-look at the comparatives of Investment property @ the top of the Assets
it shows an inclrese of 20 (420-400) in the investment propoerty this yr..
since theres no purchase or same in notes to F/S note.. its INCREASE in Fair Value.. under Fair Value Model.because 20 is the gain in value – see the movement in the SofFP – and 60 is the total I/S income related to investment property. Therefore, 60 – 20 must represent investment property income received – as rents. The 20 increase is not a cash flow, and therefore needs to be deducted fro m the 60 to arrive at the cash flow amount
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