Interest earned on temporary investment: calculation of interest earned, should it not begin from the date the loan was drawn(1 May - 1 November 2014) not from the date the construction work commenced (30 June-1 November 2014). BPP uses this approach as calculated below
$2.4m @ 8% x 10/12 160,000
$1.0m @ 6% x 6/12 ( 30,000)
Answer $130,000
with respect! what is your take on this sir
Ask the Tutor ACCA FR
OT Practice test chapter 17 question 2
Fine! But it's not the approach the examiner took when the question was asked a couple of years ago :-)
Sign in to reply to this topic.