Economics, Accounting & Business: Post your doubts here!

[redapple20]

Focus dear focus... i might nap a bit! Bubye

 

[wajiman]

Now you are just making me loose my focus!

wats the magnifying glass for ?? USE IT !! and get some focus

 

[Saiyan]

redapple20 why do you take naps all the time?
wajiman Can you explain IAS 37 and what are contingent asset and liabilities.

 

[redapple20]

Awl da tym? I havent slept fr 19 hours now!

 

[Saiyan]

wats the magnifying glass for ?? USE IT !! and get some focus

I am already wearing one! But the red apple seems to get into my way.

 

[reina81]

Which dividends are supposed to be show as not to the financial statements?

 

[redapple20]

Il roll outta da way then ttyl brodas!

 

[Anusuya]

redapple20
it will help you pharlo iskoView attachment 12664

I still didnot get the R&D cost wala part.
http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w09_qp_32.pdf 50,000 in the P/L right??

 

[wajiman]

redapple20 why do you take naps all the time?
wajiman Can you explain IAS 37 and what are contingent asset and liabilities.

Contingent liability is a liability which has a chance to occur, for eg, your company get sued for patents copyright, now you dont know what the outcome of the case is gonna be, either you win or lose, this LIABILITY is not RECORDED but is shown as a notes to that account. the company who sued you will record it as a contingent asset as it will receive cash.

Standard original wording:

Contingent liabilities
A contingent liability is:
(a) a possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity; or
(b) a present obligation that arises from past events but is not recognised because:
(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or
(ii) the amount of the obligation cannot be measured with sufficient reliability.
An entity should not recognise a contingent liability. An entity should disclose a contingent liability, unless the
possibility of an outflow of resources embodying economic benefits is remote.
Contingent assets
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the entity.

 

[Saiyan]

Which dividends are supposed to be show as not to the financial statements?

I did not get your question.

 

[wajiman]

Which dividends are supposed to be show as not to the financial statements?

proposed dividends

 

[Saiyan]

wajiman so does contingent assets also appear as a note or is it treated?

 

[reina81]

proposed dividends

Yes so then in MJ 11 P31 Q12 why is the answer b
http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_s11_qp_31.pdf

 

[Anusuya]

what comes under budgetar control system??

 

[MnMz]

Yes so then in MJ 11 P31 Q12 why is the answer b
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s11_qp_31.pdf

Because you are finding the total dividends you paid in the current year =) hence next year's proposed won't be added..as it will be next year not the in current year! =)

 

[wajiman]

wajiman so does contingent assets also appear as a note or is it treated?

as i said its not recorded but stated as a note to the accounts

 

[wajiman]

Yes so then in MJ 11 P31 Q12 why is the answer b
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s11_qp_31.pdf

proposed dividend of last year is considered and treated in current year where as current year proposed dividend will not be treated this year but next year,

so answer is 100,000 + 50,000 (last year proposed dividend) = 150,000

 

[Saiyan]

Yes so then in MJ 11 P31 Q12 why is the answer b
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s11_qp_31.pdf

The reason is that both proposed final dividend of last year and interim dividend are to be paid this year and will appear as note whereas the proposed dividend to be paid on September will appear on the notes on September.

 

[reina81]

Because you are finding the total dividends you paid in the current year =) hence next year's proposed won't be added..as it will be next year not the in current year! =)

But why will paid dividends appear as a note? isn't it supposed to be proposed? and aren't paid recorded in the A/c's so there's no need of showing them as a note?

 

[Saiyan]

what comes under budgetar control system??

A budgetary control system is a method of monitoring and controlling income, and expenditure and for managing the demands for cash, minimising borrowings . It can be applied in a business context or by an individual in relation to his or her personal finances.
In a business environment it is most valuable as a tool to control the flow of cash because a good system would monitor cash inflow and flag-up any projected shortfalls so that corrective action could be taken, for example if some customers were habitually not paying promptly or there was a sudden and unusual need for spending. Additionally, such a system would also ensure that cash was always available for essential business purposes like buying raw materials.