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Ex 65 – page 72 – Rebound (revision kit)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Ex 65 – page 72 – Rebound (revision kit)

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarMikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • May 13, 2015 at 10:35 am #245672
    AvatarAnonymous
    Inactive
    • Topics: 13
    • Replies: 10
    • ☆

    Hi Mr.Mike,

    I am having a little confusions on the calculation of Profit after tax for 20X2. Why did they not subtract the Discontinued loss from the 20X2’s Profit, so did for 20X1’s ?

    In addition, for calculating free shares from Option granted, why they had x6/12 ?. I know the Option was granted in 1.10.20X2 (half year) but get confused about that calculation.

    Please help.

    Thank much Mike.

    May 13, 2015 at 6:54 pm #245769
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Discontinued operations results are shown in “other comprehensive income”

    If you listen carefully to my lectures, I emphasise that conversions / dilutions are deemed to take place with effect from the earliest date possible. In the easier examples, this is the first day of the accounting year. But if the options are only granted say three months into the year then they could not possibly be deemed to be exercised on the first day because they didn’t exist on the first day

    Does that make sense?

    May 14, 2015 at 3:09 am #245824
    AvatarAnonymous
    Inactive
    • Topics: 13
    • Replies: 10
    • ☆

    Total clear.
    Thank you sir.

    May 14, 2015 at 6:01 am #245830
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    You’re welcome

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