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OT notes and lecture, page 9, example 3-Viesturs acquired 70% of Baiba

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › OT notes and lecture, page 9, example 3-Viesturs acquired 70% of Baiba

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by P2-D2.
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  • Author
    Posts
  • June 24, 2016 at 3:56 am #323946
    nari
    Member
    • Topics: 259
    • Replies: 175
    • ☆☆☆

    Hello

    In the lecture there was a $600,000 charge at the end. I do not understand why this 10% of the 6 mil is charged as interest since the last payment of 6 mil was made on 30 Sep 2011 along with the interest payment of $545,545. Kindly explain.

    Regards

    June 27, 2016 at 7:47 pm #324271
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7228
    • ☆☆☆☆☆

    Hi,

    I think it is because we are focuses on the accruals concept in profit or loss and not when the cash is paid.

    Thanks

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