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Dear Sir,
My question is that are training and development costs also form the part of intra company cash flows same like management charges, royalties etc???..If yes than why not in the examiner answer they are not added back after translation.
And for instance in exam conditions I have assumed that they are same as intra company cash flows and translated them into home currency and added back them to post-tax profits (translated) of home company and stated this assumption in the report will my calculations be considered correct by the examiner and I will get marks
I have already uploaded lectures working though this question, which should answer your queries.
You can find them linked from this page:
Sir I have watched this lecture but you didn’t discussed this point so please can you explain it to me because its confusing me
You are right – I don’t mention it.
The reason is that there is absolutely nothing in the question to suggest that those costs are paid to Chmura.
I suppose that they just could be, and if you did what you suggest then provided you stated your assumption you probably would get the marks.
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