FRF7 note Ch9 comprehensive example

The 36,000 is an unrealised profit when it was first recorded by Danute on the date of sale / transfer But, at the end of 4 years and that asset has been fully used up, is that 36,000 still unrealised? Or was that 36,000 realised over the 4 year remaining useful life of that item of plant? In other words, as each year passes, the 36,000 gets realised. So, at the end of the year in which the transfer was recorded and the profit recognised, one quarter of that profit is realised and only three quarters remains unrealised Similarly, at the end of the second year, half of the profit is realised and there still remains half unrealised Does that explain it for you? In future, if you want a guarantee that I shall respond, please post your questions on Ask ACCA Tutor page - I rarely look at the general forums

Thanks Sir

You're welcome

Dear Sirs, Refer to the above example, There is finance charge 1,750 expenses and 31,750 still accrued. However why adding this two amount together not equal to 36,300? Thanks!

it sums up as 33,500 (1,750+ 31,750) instead of 33,600.

Sorry, please ignore my above question, What I wanna ask is how to calculate the deferred cash (30+3-1.25). Thanks!

Apply dcf techniques and time apportion for this first part-year