BBP - Q55 Angel — OpenTuition Forums

Sstudent05129y ago

Dear Sir, Please help me with the working for solving CF as 2 points below: 1. Assets Why is the charge to OCI of PPE is $(8-3)m? As I see that in the PL,the item related to PPE is just "Revaluation of PPE", it means that its just $8m need to adjust? 6. Retirement benefit I am not sure for the amount of "Less obligation assumed on the purchase of Sweety". $(1)m. Where can I find the information in question to have this firgure? Thank sir and hope you doing well.

P2-D2Tutor9y ago#1

Hi, I'd ignore the answer as it isn't clear where the adjustment comes from. When I worked the question originally I took the figure of 80 from part (iv) of the additional information and adjusted it for the fair value of PPE acquired with the subsidiary, giving a figure of 66 (80 - 14). I then adjusted for the error made in parts (i) and (iv) with regards to the renovation borrowing costs which required debit adjustments to PPE of 3 and 2 (note 1) and 4 and 1 (note 2), which then give the answer of 76. I wouldn't worry about this one too much as I don't think too many students would have gotten it correct. Thanks