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Firstly, I am not using a kit printed in 2014 (but its for use up to june 2014) so I am not sure if the question number might be different. The question starts off with, “Port has many investments , but before 2004……..”. The other company involved is Alfred.
My question is how did they get the finance amount of $46 in the adjustment column of the SOCI? I am not getting that when I calculate 12% interest on the 2.3 mil loan. It would , however be 46 if 2% is used….unless I am calculating the 12% incorrectly.I think I have just worked it out, I may be wrong so if someone could confirm that would be great.
in ‘000
Loan 2300 – rate 12%
therefore 2300 12% = 276, then time apportion
276*2/12 = 46.
I was stuck on this too.
Hi all,
I do not understand why the 46 USD adjustment on the interco loan are not deducted from the revenue of Port and from the costs of Alfred when calculating consolidated retained earnings.
Any ideas?
Thanks,
Dimitri
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