Economics, Accounting & Business: Post your doubts here!

[MnMz]

wajiman: what's cost of capital % ???

 

[reina81]

IAS 36: Impairment of Assets
oIt applies to all assets except inventories.
oAn impairment loss of an asset is recognized when the carrying amount of an asset exceeds its recoverable amount.
oAn impairment loss is recognized in profit or loss account for assets carried at cost and treated as a revaluation decrease for assets carried at revalued amounts.
oRecoverable amount is the higher of an asset’s fair value less costs to sell and its value in use.
oValue in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

so the recoverable amount is 4 ans the carrying amount is 5 , so 5-4 = 1 loss on impairment?

Also in Q17 why did they take only retained earnings and general reserve?

 

[memyself]

http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w10_qp_32.pdf

Q 11 anyone? cash and equivelants?

 

[MnMz]

so the recoverable amount is 4 ans the carrying amount is 5 , so 5-4 = 1 loss on impairment?

Also in Q17 why did they take only retained earnings and general reserve?

Because others are capital reserves I think and are restricted....

 

[MnMz]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w10_qp_32.pdf

Q 11 anyone? cash and equivelants?

Cash equivalents include cash deposits with less than six months to maturity.
Hence = 1200+16000-8000+7000 = 16200

 

[Bushrafareed]

can anyone anyone solve specimen paper 1O , q10 , 17 and 30

 

[wajiman]

wajiman: what's cost of capital % ???

interest is the cost of capital, it is said so due to the fact business takes loans and invests them in the business and a fixed rate of interest plus the amount has to be paid back

 

[memyself]

Cash equivalents include cash deposits with less than six months to maturity.
Hence = 1200+16000-8000+7000 = 16200

Oh thanks. Not the deposit available at 6 month's notice?

 

[wajiman]

can anyone anyone solve specimen paper 1O , q10 , 17 and 30

pls provide the paper download link

 

[memyself]

btw is that the old standard? Bcos according to IAS 7 we only include deposits available at 24hours notice as cash :S MnMz

 

[MnMz]

Oh thanks. Not the deposit available at 6 month's notice?

yea...only less than 6

 

[Saad Ghori]

WaleedUQ, Saad Ghori & wajiman, abe yar equity/shareholder funds mai Pref Shares daalen ya nai?
see this post!

Patanae yar im confused too :s I mean some say that preference shares are a part of equity, except the reedamable ones :/

 

[MnMz]

btw is that the old standard? Bcos according to IAS 7 we only include deposits available at 24hours notice as cash :S MnMz

Cash equivalents include investments that are short term (less than three months from date of acquisition), readily convertible to a known amount of cash and subjected to an insignificant risk of changes in value
Thats the new one
the old one is the 24 hrs thing...

 

[MnMz]

pls provide the paper download link

http://www.xtremepapers.com/papers/... AS Level/Accounting (9706)/9706_y10_sp_3.pdf

 

[Echelon94]

Patanae yar im confused too :s I mean some say that preference shares are a part of equity, except the reedamable ones :/

yeah well that makes sense cuz we'll take redeemable as Liabilties, but these questions did not mention if they were redeemable or irredeemable

 

[Saad Ghori]

yeah well that makes sense cuz we'll take redeemable as Liabilties, but these questions did not mention if they were redeemable or irredeemable

Exactly, as WaleedUQ quoted theyre a 'sack of manure'

 

[MnMz]

can anyone anyone solve specimen paper 1O , q10 , 17 and 30

30 - IRR = 9 + (4 * 16142/(16142 + 4931) )
17 - well the answer is A....bt there is a big fuss abt it...so yea..
11- answer C.....117200 - share premium - bonus share issue

 

[reina81]

Q30 for this we just take NPV as % of investment and rank according to the one with the highest percentage right?
http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w11_qp_31.pdf

 

[memyself]

Cash equivalents include investments that are short term (less than three months from date of acquisition), readily convertible to a known amount of cash and subjected to an insignificant risk of changes in value
Thats the new one
the old one is the 24 hrs thing...

wait, 3 months or six? :/

 

[Echelon94]

can anyone anyone solve specimen paper 1O , q10 , 17 and 30

pls provide the paper download link

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_y10_sp_3.pdf

haha, 17 & 30 were among the ones we have already wasted so much time on here, you guys wanna do that again