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Chapter 5 Example 1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Chapter 5 Example 1

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by MikeLittle.
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  • February 5, 2016 at 10:30 am #299363
    Chloe
    Member
    • Topics: 95
    • Replies: 243
    • ☆☆☆

    Hi

    I do not understand how you arrived at the figures for TNCA.
    Please can you explain the Financial Position and the P&L?

    I’m afraid that this is not obvious for me.

    Thanks

    February 5, 2016 at 11:17 am #299368
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23366
    • ☆☆☆☆☆

    “During 2009 it was discovered that certain non-current assets had been included in the records at 31 December 2008 at $500,000 in excess of their recoverable amount and that this situation was unlikely to change”

    So we need to reduce last year’s TNCA by $500,000 and we need to reduce this year’s TNCA by $500,000

    What is there not to understand?

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