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Hey sir, in december2012 past paper q.1 why is deferred consideration of 14400 time apportioned and multiplied by 10%(df)? It is included in finance cost of consolidated PNL.since we have agreed to pay on at the last day of the year why time apportion? In the same question associate income is calculated as 2000*40% =800 then what about the 500 already shown in inc.statmnt of via gem..
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“In the same question associate income is calculated as 2000*40% =800 then what about the 500 already shown in inc.statmnt of via gem..”
Am I not correct if I say that that 500 already in the statement of profit or loss for Viagem is ignored in the consolidation and in the consolidation the figure for “Share of Associate’s results” takes the full $800?
“why is deferred consideration of 14400 time apportioned and multiplied by 10%(df)? It is included in finance cost of consolidated PNL.since we have agreed to pay on at the last day of the year why time apportion?”
– for the purposes of calculating goodwill we look at the situation as at the date of acquisition and, as at that date of acquisition, there was a full year ahead of us before we would be face with making that payment on 31 December
Imagine that you promise today to pay on 25 May, 2017 an amount of $110 and that your cost of capital is 10%. At what figure would you record that “today” promise in your “today” calculations?
OK?
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