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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › DEC 2010 Jocatt
Hi,
I have got one question regarding the cash flow statement of Jocatt.
In note(i) given, there is one sentence ” No gain or loss on the 8% holding in Tigret had been reported in the f/s at 1 Dec 2009.”
For me, i think there should be a gain in restatement of $1m to be included in the profit b4 tax and later to be deducted again under adjustment of non cash item column. But the ans given by ACCA is adjust the gain under profit b4 tax directly without adding the gain to the profit b4 tax given.
Im confused. Hope that my question will hv a reply. Thanks in advance! 🙂
Hi,
As the investment was ‘held-for-sale’ in the old question, or presumably ‘FVTOCI’ in the updated revision kits, then any gain would go through OCI and not profit or loss. We would not therefore adjust the PBT figure.
Thanks