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

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June 24, 2016 at 3:56 am #323946
nari
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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
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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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