Dec 2013 Q5 FundoForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Dec 2013 Q5 FundoThis topic has 3 replies, 2 voices, and was last updated 9 years ago by MikeLittle.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts December 1, 2015 at 1:03 pm #286708 amnaParticipantTopics: 92Replies: 93☆☆can i know why the finance cost of 400 is again added in the provision.Non-current liabilities Provision for property restoration costs (5,000 + 400 above) 5,400isn’t it the 5000 that has to be shown as provision? December 1, 2015 at 1:38 pm #286717 MikeLittleKeymasterTopics: 27Replies: 23327☆☆☆☆☆The $5,000 is the PRESENT VALUE of the cost of restoration as on day 1 of this yearNow we need to unroll the $5,000 at the rate of 8% because we’re one year closer to having to restore the premisesThe double entry is therefore:Dr statement of profit or loss $400 (8% x $5,000) Cr statement of financial position $400 December 5, 2015 at 7:52 pm #287985 amnaParticipantTopics: 92Replies: 93☆☆thank you December 5, 2015 at 8:37 pm #288033 MikeLittleKeymasterTopics: 27Replies: 23327☆☆☆☆☆You’re welcomeAuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In