Sep/Dec 2016 – Rope BPP amended (a) – Sale of investments

You refer to amended (a) – I have access only to original Q & A:

In the Q: “The directors plan to sell some investments in listed shares to fund the repayment of the chief executive’s loan. At 30 September 2016, the investments were carried in the statement of financial position at their fair value of $350,000.”
And it can be seen in the forecast against the line “Sale of investments” the last column is $500,000. So the answer is saying that that should be challenged – I don’t know what else to add, the answer to me seems clear:

“Management is planning to sell some investments in listed shareholdings for $500,000 to repay a loan to the chief executive. At 30 September 2016, however, the fair value of the investments was only $350,000. As the fair value of these investments is revalued at the end of each year based upon the current share price, this is assumed to reflect the amount at which the shares were trading at the end of September. Management is therefore expecting the shares to increase in value by $150,000 in the space of two years, which represents a 43% rise. This is an extremely optimistic assumption in comparison to average rates of growth across most stock markets.”

You’re welcome Chris!