[misbahkiran]

thank you sir :).

I will definitely donate my time and money to OpenTuition to help students. Believe me sir there is no such platform like OpenTuition. Stay blessed.

[misbahkiran]

pass 71 percent

[misbahkiran]

`sir

you are great.. God blesss you

[misbahkiran]

thank you so much sir. I have my exam today. 🙂

[misbahkiran]

I further searched on google.

How does inflation affect real interest rates?
What Is the Fisher Effect? … The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate. Therefore, real interest rates fall as inflation increases, unless nominal rates increase at the same rate as inflation.Aug 23, 2020

[misbahkiran]

sir aren’t bank base rate move opposite to inflation?

When inflation increase usually interest rate decreases and interest on saving accounts are effected if they are variable.

Borrowing also effected as credit rating. But if rate decrease due to inflation may result in decrease borrowing cost.

[misbahkiran]

thank you sir 🙂

[misbahkiran]

thank you so much sir..now that is much comprehensive explanation.. you have solved my big problem..thank you

[misbahkiran]

thank you so much sir that help me alot

[misbahkiran]

or in other words if I say

if risk effect strategic direction of company that are strategic risks and operational risk only effect our daily day to day activities. we need to look into risk itself and then see its categorization. am I right?

[misbahkiran]

Thanks a lot sir for comprehensive explanation.

and

Sorry for the silly mistake. I really appreciate your response on student queries.

[misbahkiran]

criticism means we have to elaborate cons mostly.

[misbahkiran]

thank you sir. Though we can expect the unexpected in exam. 🙂

[misbahkiran]

cathy1036 wrote:Thank you for sharing, I think it will be really helpful.  Good luck with your exam in December.

welcome dear..:) Happy to help

[misbahkiran]

Hi can any one guide on SBL preparation?

[misbahkiran]

I really worked hard for this subject

First I studied from OpenTuition notes and sir Stephen helped me a lot if I have any query.

then I refer to Silvia detail published articles on IFRS. These helped me alot. I subscribed to her IFRSkit course specially for students. Her explanation with examples is brilliant.

I read Technical articles on SBR.

Plus I did almost all past exams on acca website in exam condition twice. Complete my revision kit twice. This time paper was totally different but if your concepts are clear and you practice alot you can do it.

Dont forget to subscribe to ACCA webinars on exam approach. That really help you.

Should you need further help I am happy to help.

[misbahkiran]

AlhamduliAllah got 71 thanks alot to sir Stephen for responding my all queries

[misbahkiran]

I have one question

did you all did EPSM before sitting in SBL examination..

Please guide.

Goodluck to all of you

[misbahkiran]

my exam went well. my sincere advice is if you wanted to go through the complete syllabus first listen to OpenTuition lectures for SBR. I felt that notes for SBR aren’t that detailed so I register with IFRSBOX.com. it was a great help for me. plus past exams practice. tutors on this open tuition are really supportive. whatever you post they will reply you within 24 hours. They are truly sincere tutors. Goodluck

I will be sitting SBL in December so please guide me.

[misbahkiran]

Please guide if following narration look good.

“For the evaluation of share based payment as an additional consideration or remuneration we need to consider the fact whether employees are shareholders as well. From the scenario it is evident that key management personal is still in employment and it can be argued that key management personal are shareholders as well.

Key management personnel and employees are still in employment and as an expansion plan company want to keep them so they offer share based incentive. There is no other condition which can indicate it as an additional consideration so we classified it as share based payment as a part of remuneration.”

for my other question
sir I read that question again and got it.. its equity settled because it fall in its definition.

A share?based payment transaction in which the entity

receives goods or services as consideration for its own equity instruments (including shares or share options), or

receives goods or services but has no obligation to settle the transaction with the supplier.

as entity already receive service from employees which indication from the fact that its is vesting immediately.

[misbahkiran]

Thanks alot sir. 🙂

May God bless you.

[misbahkiran]

and sir they classify it as equity settled share based. is it what they assume or there is something I am missing regarding some specific criteria that lead to equity settled share based.

[misbahkiran]

Thanks alot sir.. I noted your advice

so actually we hedge the purchase of inventory. so at the time of purchase we need to settle the instrument right? so your point is we should recycle at the time of purchase. its not clear in this question but I am asking logic.

and if they want to hedge the fair value of inventory it shouldn’t be cashflow hedge.

You are really a great help for me. God bless you

[misbahkiran]

Hi Sir

Good day

My question is with change in value of steel Value, don’t we need to check hedge effectiveness, as gain in OCI is 3 and Loss on inventories is 2, so on May x4 we will reclassify ineffective portion to Profit and loss that is only 1 million and on sale in April 20×5 we will reclassify remaining 2 million from OCI to Profit and loss.

As per my understanding We need to keep hedge reserve to lower of accumulated fair value change of hedged item or hedge.

on I may X4

DR profit and loss 2million
Cr inventory 2million

Dr OCI 1 million
Cr profit and loss 1 million
being ineffective portion

On April 20×5

we will

DR OCI. 2
Cr Profit and Loss 2
Reclassification entry

Dr cash 6.2
Credit Sale 6.2

Please correct my understanding if I am wrong as in BPP they reclassify 2 million on 1may X4.

[misbahkiran]

Hi Sir

I would like to continue this thread as I have query in same question.

Question 1 part a i

examiner wrote that current year Exchange difference will be recorded in OCI and then accumulate in equity. That I understand well.

the point is translation difference for the year is split between parent and NCI each year. Am I right on this point? if I am right then accumulated balance on equity must be share of parent only. Then why in disposal they are recycling only 80 percent of it to profit and loss as this whole relate to parent as we are accounting NCI part with NCI each year. This is evidence from NCI working.

will recognition of exchange gain/ loss during year will be accounted for as follows

exchange gain on goodwill
Dr Goodwill
Cr NCI
Cr OCI with parent share

exchange gain on net assest

Dr net assets
Cr NCI
Cr OCI

waiting for your kind response.

[Author]

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