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Financial asset

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Financial asset

  • This topic has 5 replies, 2 voices, and was last updated 11 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • June 3, 2014 at 12:22 am #173054
    zaca
    Member
    • Topics: 18
    • Replies: 37
    • ☆☆

    Hi,
    When bond issuing, how do we recognise the cost of issue and discount

    Recognise Cost of issue is a asset and amortise it

    or deduct it like discount to arrive the final liablities like loan or redeemable share

    June 3, 2014 at 7:34 am #173098
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Recognise as an asset and depreciate …… but there’s a lot of controversy about it. For example, is it an asset?

    June 3, 2014 at 9:09 am #173150
    zaca
    Member
    • Topics: 18
    • Replies: 37
    • ☆☆

    thank you alot, to day i do a kit and got stuck in this problem ” Trade in allowance “, i search the book of bpp and can find the explanation
    ” Old equipment that had cost 6ml and replace with new eqip had gross cost 8mil, the equipment manufacture allow ” trade in allowance ” for 0.5ml.

    Is the ” trade in allowance ” = cost of equip 6ml – acc’dep’ – trade in value

    and would you please clearly explain the record transaction in this case.

    June 3, 2014 at 9:25 am #173155
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    When you sell your car and buy a new one, you could go to the garage and ask “How much is this new car?” Let’s say it’s $20,000

    Ok, then you say to the sales person “How much will you deduct from the $20,000 if I give you my old car?”

    The sales person says “$4,000” so you give away the old car and you pay $16,000 and drive away with a new car

    The trade-in allowance is the $4,000 that you were “allowed” to deduct from the cost of the new car. It’s instead of selling the old one for cash and then having to pay the full $20,000

    Ok?

    June 3, 2014 at 9:31 am #173158
    zaca
    Member
    • Topics: 18
    • Replies: 37
    • ☆☆

    ah, thank so much, million thanks!

    June 3, 2014 at 9:49 am #173167
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    You’re welcome

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    Posts
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