Doubt in bpp revision kit

I don't, so you'll have to type out the question! It sounds like an asset was acquired 9 years and 9 months ago (or it has an estimated remaining useful life of 9 years and 9 months)

Question 1) Kaplow purchased a machine for $30,000 on 1st Jan 2005 and assigned it a useful life of 12 years.On 31March 2007 it was revalued to $32000 with no change in useful life. What will be the depreciation charge in relation to this machine in the financial statements of Kaplow for the year ending 31 Dec 2007. How do we get here 117 months??? Q2) In preparing financial statements for the year ended 31 March 2006,the inventory count was carried out on 4April 2006.The value of inventory counted was $36m.Between 31 March and 4 April goods with a cost of $2.7m were received into inventory and sales of $7.8m were made at a mark up on cost of 30%. At what amount should inventory be stated in the Sofp as at 31 March 2006. How do we get that 1.3????ie.(7.8m/1.3)???

"How do we get here 117 months???" - it's what I guessed and what I wrote in my previous post! The machine did have an estimated useful life of 12 years when bought on 1 January, 2005. That's 144 months. Then it was revalued on 31 March, 2007. How many months are there between 1 January, 2005 and 31 March, 2007? Take that figure away from 144 and what have you got? "sales of $7.8m were made at a mark up on cost of 30%." - oh dear! Were you exempt F3? If so, I strongly recommend that you work through the F3 course notes and listen to the F3 lectures about "mark-up" and "margins" In fact, I also go through the topic in chapter 8 (?) in the F7 lectures So, how do we get 1.3? Cost + Profit = Selling price Profit we know is 30% and it's a mark-up so that means that cost is 100% So 100% + 30% = 130% selling price We have to remove the profit from the selling price to get back to the value to include in inventory Removing the profit we find that cost is 100/130 x selling price and that's the same as saying "selling price / 1.3" Seriously, go through mark-ups and margins until you are totally happy (margins are different than mark-ups) - it almost certainly will appear in the F7 exam and it's worth 2 marks!

Hillusion acquired 80% of Skeptik on 1july 2002.In the post acquisition period Hillusion sold goods to Skeptik at a price of $12m.These goods had cost Hillusion $9m.During the year to 31 March 2003 Skeptik had sold $10m (at cost to Skeptik) of these goods for $15m. How will these affect group COS in the CS of Profit or loss of Hillusion for the year ended 31 March 2003. Answer is decrease by $11.5m

"Answer is decrease by $11.5m" yes, that is correct

How do we get decrease by 11.5m

We cancel the intra-group trade (have you even LOOKED at the course notes? It's all in there in great detail together with a video lecture and worked examples in the notes!) of $12m by Dr Revenue $12m Cr Cost of sales $12m so that gets rid of the idea of selling from one pocket into the other pocket Then we need to calculate the unrealised profit - in this case it's $500k - and we need to ADD this to Cost of sales The net effect is to reduce cost of sales by $11.5m OK?

How do we get there 25% in calculating purp????

Where has 25% been mentioned? I've already told you that I don't have the question! "...sold goods to Skeptik at a price of $12m.These goods had cost Hillusion $9m" OK, F3 lecture in brief. (Were you exempt F3? Why? Have you worked through chapter 8 in the F7 course notes? Why not?) Cost + profit = selling price 9 + 3 = 12 What percentage is 3 of 12?

Wiley acquired 80% of Coyote in 1 Jan 2008.At the date of acquisition Coyote had a building which had a fair value $22m and a carrying ant of $20m.The remaining useful life was 20yrs.At the year end date of 30June 2008 the fair value of the building was $23m. Coyotes profit for the year to 30 June 2008 was $1.6m which was accrued evenly throughout the year. Wiley measures NCI at fair value.At 30 June 2008 it estimated that goodwill in Coyote was impaired by $500000. What is the TCI attributable to the NCI at 30 June 2008??? In the answer how do we get OCI -Revaluation gain 1000000.

"What is the TCI attributable" - what is TCI - I don't recognise the abbreviation, sorry

Total comprehensive income

Can you give me a question reference, please? I would like to see the complete question

Sir, I have already typed the question above

"In the answer how do we get OCI -Revaluation gain 1000000." From the information that you have given me, I can only assume that the $1m revaluation gain was the movement in the building fair value from $22m at date of acquisition to $23m at the year end

At 30 sept 2009 Sandown's trial balance showed a brand at cost of $30m,less accumulated amortisation brought forward at 1 Oct 2008 of $9m.Amortisation is based on a ten year useful life.Impairment review on 1April 2009 concluded that the brand had a value in use of $12m and a remaining useful life of three years.However on the same date Sandown's received an offer to purchase the brand for $15m. What should be the carrying amount of the brand in the statement of financial position of Sandown's as at 30 sept 2009. Can you please show me step by step(solution).

Impairment review on 1 April, so half year amortisation from September 2008 to April 2009 at 3,000 pa = 1,500 and a carrying value at 1 April, 2009 of $19,500 Recoverable amount is higher of ..... so recoverable amount is $15,000 and a three year expected life so $5,000 pa and $2,500 for a half year $15,000 less a half year amortisation of $2,500 = $12,500 Ok?