[cys94]

Chris, thank you so much for your explanation. I will log in to see how it works. 🙂

[cys94]

Hi Chris, thanks for your reply. However, I still have some doubts, hope you can help me with them.

1) So is it true that either my supervisor or manager (both are non-qualified accountants) are able to sign off my time? Are there any specific requirements to sign off my time?

2)In my company, the finance and administration are merged into one department (to save cost I think). Hence the title of my current position is “finance and admin staff”. Despite the name of my position, I mostly do accounting work. However, I am afraid that the name of my position will affect me when I claim for the time. Does it in anyway affect me?

[cys94]

By using standards, u mean based on past experience and company’s policies to produce the budgets?

Is standard costing used to produce fixed budgets and flexible budgets as both budgets are for a period of 1 year?

[cys94]

My question assumes that the company buys the high quality raw materials in order to minimise the number of rejected products.

[cys94]

Ok, thank you 🙂

[cys94]

Thanks for your compliment 🙂

So the answer be like this?

Y1: –
Y2: Add back 300
Y3: Add back 500
Y4: Add back 375
Y5: Add back 250
Y6: Add back 125
Y7: –

For Y2 and Y3, we add back 300 in Y2 and 500(200+300) in Y3.

For Y4 to Y7, the CE is being amortized so the amount is becoming less by each year.

[cys94]

Ken, i would also like to ask about the Capital Employed.

Using the same example above, the Capital Employed used for the calculation of EVA will be:

Y1:-
Y2: Add back $300
Y3: Add back $200
Y4-6: –

I left Y1 ‘blank’ as Opening Capital Employed is used. However, I do feel a bit uncertain to leave Y4 to Y6 ‘blank’. Are there any mistakes in my answer?

[cys94]

Sorry, my bad about that. Thank you very much.

[cys94]

Okay, thank you 🙂

[cys94]

Is my format as shown below appropriate?

“Appendix” (appendix before everything else)

To:
From:
Date:
Subject:

Introduction

“Report content”

[cys94]

Thank you 🙂

[cys94]

Understood, thank you 🙂

[cys94]

Okay, thank you very much 🙂

[cys94]

Ok, thank you very much.

[cys94]

Ok, understood. Thanks John. 🙂

[cys94]

Oops, I missed out that line. Sorry John for asking this stupid question, I will be more careful next time.

[cys94]

Okay, understood. Thanks John. 🙂

[cys94]

Thank you for ur reply John,

1) I still dont understand, why when the realisable value is after tax we dont need to calculate the balancing allowance/ balancing charge?

2) I understand the first part of my question. Thank you. However, you forget to answer the second part of my question.

3) Thank you, I understand now. 🙂

[cys94]

Ok, understood. Thank You John 🙂

[cys94]

So for BBS stores (June 2009), questions a ii), why are the retained earnings reduced by 817?

[cys94]

Dear John,

1) Is the way we treat redeemable and irredeemable bonds the same (in terms of
calculation, not definition)?

2) For convertible bonds, the questions will state something like this:

-20 million loan in the form of 6% convertible bond on which interest is payable annually.
Conversion may be undertaken on the basis of 50 equity shares for every $100 from the
beginning of year five onwards.

Can I ignore the second sentence (Coversion….onwards) ? Because for the questions that I have done regarding convertible bonds so far, the answers have nothing to do with the second sentence.

[cys94]

Thanks John, great explanation. 🙂

[cys94]

Thank you very much John, I understand now.

[cys94]

I understand now, thank you very much John.

[cys94]

Sir, in Pursuit Co (June 2011), we don’t have to minus the TAD before computing the tax as it states that the operating profit is after TAD, is that correct? Can we assume that operating profit is always after TAD? By the way, is operating profit the same as EBIT?

[Author]

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