• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA Books

Books for Sept'23 ACCA exams : Get your discount code >>

New! Ask ACCA AI Tutor

Post your questions
& get instant answers

Deferred Gain

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Deferred Gain

  • This topic has 5 replies, 2 voices, and was last updated 3 months ago by JillyB.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • June 4, 2023 at 7:56 am #685967
    Katherine33
    Participant
    • Topics: 6
    • Replies: 5
    • ☆

    Can you please explain how to calculate the deferred gain in this question. Please explain why they considered the interest in the calculation. Thanks.

    Q.) On 4 May 2020, Fogo Ltd sold a freehold warehouse which it had used exclusively in ts trade. The warehouse was sold to an unconnected company for £560000. It had cost Fogo Ltd £100000 when it was acquired in September 2001.

    Interest Payable – On 1 October 2019, Netta Ltd borrowed £1000000 from a bank at an annual interest rate of 5%. During the year ended 30 September 2020, the interest payable of £50000 was in respect of the following:

    1.) Interest on £550000 on the loan to acquire fixed pant & machinery for the use in its factory. The fixed plant & machinery has an expected useful life of 15 years.

    2.) Interest on £450000 of the loan to acquire a 3% shareholding in a trading company called Jona Ltd.

    June 5, 2023 at 9:49 am #686035
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 428
    • ☆☆☆

    The question does not make sense – what is it asking?

    June 5, 2023 at 10:26 am #686046
    Katherine33
    Participant
    • Topics: 6
    • Replies: 5
    • ☆

    The question is:

    Calculate the amount of the gain which can be deferred if a claim for group ROR is made and explain when the deferred gain will become chargeable.

    June 5, 2023 at 3:07 pm #686059
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 428
    • ☆☆☆

    The amount that can be defered is proceeds minus cost
    The gain is chargeable when the second asset is sold, or if the asset is intangible then the earlier of – 10 years, when it is sold or when it ceases to be used in the business

    June 5, 2023 at 3:17 pm #686060
    Katherine33
    Participant
    • Topics: 6
    • Replies: 5
    • ☆

    Thank you!

    June 8, 2023 at 10:35 am #686475
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 428
    • ☆☆☆

    no worries – hope you got on ok in your exam

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA Qualification syllabus changes for 2023/24

Need verifiable CPD for 2023? 21 units of FREE CPD on offer from ACCA

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

PQ Magazine

Latest comments

  • nghja2012 on Inventory – Examples – ACCA Financial Reporting (FR)
  • kelems on Basic group structures – SPLOCI introduction and example – ACCA (SBR) lectures
  • jcosgrove16 on Double Entry Bookkeeping (part a) – ACCA Financial Accounting (FA) lectures
  • ayeodele on The management of receivables – Change of policy – ACCA Financial Management (FM)
  • Akhil004 on Discounted cash flow techniques (part 2) – ACCA (AFM) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in