FA BPP Revision Kit 2020-2021 , Preparing Basic FS , 19.4

AAsif5y ago

Greetings sir, In 19.4, I have some confusion and contention with some of the answers presented. 1) In the Question it states Net profit before tax, and in the answer, it gives Net profit before interest and tax. 2) Interest paid - my answer : 60 (derived from Financial Costs within the SOPL) Answer by BPP : Blank, but mentioned: Subtract. 3) Receipts from sale of non current assets. My answer : 32, derived from Additional note 2. BPP answer: 62. Please guide.

John MoffatTutor5y ago#1

1. We always start with the profit before interest and tax (and show the interest and tax paid separately after 'cash generated from operations'. 2. It is a typing mistake - the answer should show 60 (not blank) 3. Note 2 only refers to fixates and fittings. There is also note 1 (sale of non-current asset investments).

AAsif5y ago#2

1. The question only mentioned the title “Net profit before tax” , whereas the answer mentioned the title “Net profit before interest and tax” and gave the answer accordingly. Must be another typing mistake. Thanks for the answers :)

John MoffatTutor5y ago#3

But you can see from the rest of the list to be completed that interest paid appears later in the list (along with tax paid), so we must start with the profit before interest and tax :-)

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