NCI

@aarina said:
Good day chris,

Can you check if my proforma is correct?

NCI @ acquisition ( FV: NCI% x S’OSC x SPo)
+ NCI% x SPostRE/SPostNA/SPAT
– NCI% x URP on inventory (S seller)
– NCI% x URP on fixed asset (S seller)
– NCI% x g/w impairment loss
– NCI% x excess depreciation (on revaluation upwards)
+ NCI% x reversal depreciation (on revaluation downwards)

Many thanks.

Hi,

I’d recommend that you use the standard workings that are used in the notes to help you answer the questions rather than commit to remembering a pro-forma but it is your choice.

From what you’ve written then it looks reasonably correct. If you use the standard workings then everything apart from the goodwill impairment would be taken account of.

Thanks

@aarina said:
regardinghttps://opentuition.com/acca/f7/f7-revision-mock-exam/ Q7 on transfer of NCA how do you work out the PURP to be $56K

i thought its 850 – 750 / 5 years (based on the simplified method shown by mike little )
which is the UP on transfer divided by remaining UL

if i were to do your 3 collum table method
the cost wil be 750
Dprct: 750/7 x 6/12 = 54K
CA: 696

Then,
696 – 820 = up 124

Then
CA:820
Dprctn: 820/5 = 164
CA:656

Excess 124 – 110 = 24 PUP net

i dontget this the answer is 56.0

Hi,

You rarely get NCA PUPs in the exam so if you see it then move on and do the easier parts first!

The best way to calculate it would be to look at the difference between the carrying value now compared to the carrying value if no transfer had happened.

Thanks