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Hi,
I have two question:
i) If consolidated financial statement in not examined in section C than, could it be examined in section B?
ii) What is likely hood of Cash flow statement to feature in Section C of September exam(Please suggest an educated guess). I know it from F3, if it come how much different it would be from F3?Thank You in Advance
I was thinking about 5 minutes ago whether the examiner may just decide not to examine consolidations at all in an exam … but I dismissed that thought as ‘outrageous’
But he might. One day. And that would surprise a few people!
It potentially COULD be a short question in section B but still more likely for 20 marks in section C
‘if it come how much different it would be from F3?’ – it’s not a major step up to F7 from F3 in the area of cash flows – so insignificant that, other than sheer length of question, I can’t see where there are any substantial additions
Thanks For your answer sir,
I had another question in mind, it is that In case convertible loan we charge finance cost on debt portion/component using market interest rate, should we deduct the difference between finance cost and Actual interest paid from equity component or from retained earnings?
Thanks in Advance.
Neither – the difference between realistic interest (market rate) and actual interest (coupon rate) will be ADDED to the debt liability
This should be in a separate thread! It has nothing to do with “Consolidated accounts in section B”
Try to think of others that may not be interested in your question about consolidations in section B but that WOULD be interested in what to do with the ‘extra’ interest
Thanks for your answer Sir, I will practice consolidation questions and also cash flow problems.
Another question was in mind that when we charge finance cost in case of Convertible Loans at market interest rate, the difference (between finance cost charged and interest paid) should be deducted from equity component in Financial Statement and not in retained earnings, Am I right or not, if not please explain the phenomenon.
Thanks in advance.
I asked same question in different post, the last post was mistakenly posted so you do not need to answer the last question.
Thanks
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