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Because they don’t exist as explained at the start of the lectures. I thought that chapter 6 WAS lectured / recorded!
IAS 16 States that ‘An item of property, plant and equipment that qualifies for recognition as an asset shall be measured at its cost’ Why do you have difficulties in applying the cost principle, especially when assets are purchased as a group or when it is purchased over time.
Can you tell me how to answer this question
There are not many assets in companies’ records that are carried at their “today’s” value. It’s not the initial recording at cost that is the problem. It’s the carrying value in subsequent years.
The idea of writing down a building over 50 years has always seemed laughable to me! Ask the Druids from Stonehenge or the Pharoahs of Egypt.Does that answer it?
what are net borrowing/shareholders funds ratios and net borrowings/shareholders fund and minority interest.
What do you mean “What are these ratios?”
Are you asking “How are these ratios calculated?” or are you asking “What do these ratios indicate?” Or even “Why are they important?”
how would intrepret these ratio.is it the same as debt to equity ratio and debt to capital ratio
Pretty similar. If you were to include debt within the denominator in the second ratio you would have the gearing ratio
You can forget the “minority interest” in the first ratio for two reasons.
1) there will be no minority interest element in a ratio question in F7, and
2) there is now no such thing as a minority interest. They are now referred to as non-controlling interest
Hi Mr. Little Is it possible to use opentuition course notes and lectures only along with practicing questions to pass F7 or do I need to get a BPP Text Book and read that also?????
Hi Nigel, others claim to have used just the opentuition material and a revision kit of past exam questions and answers. I certainly believe that it’s possible but, of course, you’ll need to put in the hours practising those past exam questions.
I’ve recorded, and they are on site, answers to questions 1, 2 and 3 from all of the past exams except December 2013 and June 2014 – they will come!
Follow those as I work through them on the screen and you’ll soon be ignoring me and my efforts – you’ll be racing through them by yourself!
Of course, if you have any problems, just post again on Ask the Tutor
3 million options @ $4 will raise $12m
If the company had wished to raise $12m at any time during the year, they could have issued shares at $5.
How many shares would they have had to issue at $5 to raise $12m?
2.4m shares at $5 = $12m
Therefore, the 3 million options are the equivalent of 2.4million @ $5 plus 600,000 free shares
That’s where the 600,000 comes from
and that working is actually set out for you in the printed answers!
chapter 7- non-controlling interests.
why do we have to deduct goodwill impairment from consolidated retained earnings in W3? does it really reduce in value in real life (I mean the cons. ret. earnings) or is it just a record in the books?Have you ever seen a company’s consolidated retained earnings? Or are they merely a concept? When was the last time you inspected a profit?
Do these questions of mine make you think about your own question?
If you still have a problem with the concept, post again
🙂
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Are there any group revision sessions?
I don’t know! There are past exam questions worked answers on this site but I have no idea whether there is a group of students that have formed a group to help each other study (is that what you meant?)
Sorry
“Are they merely a concept?” is my question.
Also i didn’t understand the logic behind deducting goodwill impairment from con. ret. earnings.
could you pls clear both the doubts?
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Thank you for yr reply. I recall in the past when I was doing F5, there were group discussions systematically for each chapter and hence we could revise and participate accordingly.
anonymous, can you accept that goodwill is an asset? It’s intangible and it only arises on the acquisition of a subsidiary
Ok so far?
Now, like any other asset, we need to write it off over its estimated remaining useful life, But goodwill is strange – we do NOT amortise it straight line over, say, 20 years.
Instead we carry out an annual impairment review to determine if it has deteriorated and, if so, by how much – but essentially, we write it off like we would with depreciation of a TNCA
Ok! But goodwill isn’t an asset in any of the accounting records of the group! It only arises on a consolidation. So where shall we write it off? There is only one solution to that question – against consolidated retained earnings!
Better?
fcoonjah, sorry, but we don’t have that facility for F7. We have lots of other material like worked examples for past exam questions, and we have flash cards and mini-exercises
…… but no revision lectures, sorry
Thank you very much Mike Sir. It is super clear now. I like the way you explained-step by step.
Thank you again.
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