Hi Mike,
Q1--In Q Ashanti --Para5.
Ashanti sold $5m of goods to customer. It is probable that Ashanti will not recover the amounts outstanding. Ashanti wishes to make an additional allwance of $8m against the total receivable balance at the year end of which $5m relates to this sale.
Adjustment for above:
Revene deduct $5m (I am ok with this)
But there is another adjustment causes problem for me:
Impaired receivable deduct $3m in Ahanti's profit/loss
--Why do we need to do this adjustment?
-- why the adjustment for receivable appear in Profit/loss? -I thought it should be included in sofp.
Q2--the same question--para 6.
There is a revaluation loss on PPE which was (1.6m).
The adjustment for it:
--deduct 1.6m before gross profit (I am ok with this adj)
--BUT the 1.6m was added back in other comprehensive income--why this adjustment need to be added back in OCI? it is a net revaluation loss after offset the revaluation surplus.
Thanks in advance.
Q1--In Q Ashanti --Para5.
Ashanti sold $5m of goods to customer. It is probable that Ashanti will not recover the amounts outstanding. Ashanti wishes to make an additional allwance of $8m against the total receivable balance at the year end of which $5m relates to this sale.
Adjustment for above:
Revene deduct $5m (I am ok with this)
But there is another adjustment causes problem for me:
Impaired receivable deduct $3m in Ahanti's profit/loss
--Why do we need to do this adjustment?
-- why the adjustment for receivable appear in Profit/loss? -I thought it should be included in sofp.
Q2--the same question--para 6.
There is a revaluation loss on PPE which was (1.6m).
The adjustment for it:
--deduct 1.6m before gross profit (I am ok with this adj)
--BUT the 1.6m was added back in other comprehensive income--why this adjustment need to be added back in OCI? it is a net revaluation loss after offset the revaluation surplus.
Thanks in advance.
