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Specimen exam section A, q4

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Specimen exam section A, q4

  • This topic has 3 replies, 2 voices, and was last updated 11 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
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    Posts
  • November 1, 2014 at 9:16 pm #207138
    mdmkd
    Member
    • Topics: 13
    • Replies: 17
    • ☆

    hello,
    I have a question related to Q4 of Section A of the specimen exam.
    From January to February we have 2 months * 40.000=80.000
    then we have the period from 1st of March till 30th of June = 4 months
    4*40.000 that should be amortized during period of 5 years
    then,in the answer it is written 160.000*3/12…why 3 months, not 4 (march, april, may and june )?
    Thanks!

    November 6, 2014 at 4:26 pm #208032
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23362
    • ☆☆☆☆☆

    We start to amortise the capitalised development costs from the day it goes into production. That date was 1 July 2014 and from then until the year end is just 3 months – July, August and September

    Is that ok?

    November 8, 2014 at 2:02 pm #208414
    mdmkd
    Member
    • Topics: 13
    • Replies: 17
    • ☆

    thank you!

    November 9, 2014 at 6:08 pm #208673
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23362
    • ☆☆☆☆☆

    You’re welcome

  • Author
    Posts
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