[xiiaolih]

sorry sir, ya the company sets the bonus system like higher divisional profit, higher bonus something like tht.

[xiiaolih]

For eg. If the questions mentioned that the bonus of divisional manager is linked to ROI, so it makes sense that the divisional manager will prefer to use ROI as selection criteria for investment projects. If the questions mentioned that the bonus of the divisional manager is linked to RI, so it makes sense that the divisional manager will prefer to use RI as selection criteria for investment projects.
My question is if the bonus of divisional manager is linked to DIVISIONAL PROFIT <<, it refers the managers will use ROI or RI as selection criteria for investment projects?

Thanks

[xiiaolih]

Hi sir,

Actually the question is asking for yield in total and I have the answer.

I just go and assume it and wondering if that is the case the question ask about yield in each material, it will be how to calculate?

Thanks

[xiiaolih]

ya, I have stated counterparty and insolvency risk, so I am asking is there any other risks involved?

ya I know, but I just to hope understanding more about how does money market hedge works.

THANKSSS U A LOT SIR

[xiiaolih]

ya, I have watched all the free lectures video, but most of the hedging techniques are more useful for hedge against payments rather than hedge against receipts (except forward, futures, options, money market hedge, leading, matching, netting, invoicing in home currency)

For example, like if we are talking about leading and lagging. Leading may be possible for hedging against receipt. However, it seems like not really right to use lagging to hedge against receipt is it? because seems like no logical to ask your customers to pay u late??

Also, like currency swap. It is related to swapping against the interest payments (like one party want floating rate, another want fixed rate). So, if we merely want to use it to hedge against receipt is not possible right?

[xiiaolih]

One more question
3. Can we use leading and lagging to hedge against receipt? Is it logical to do so?

[xiiaolih]

How about like talking about demand and supply of currency, inflation rate and spot rate which will affect interest rate and eventually result in change in forward rate? Does this consider as inter-relationship?

Because as I knw the four-way equivalence: interest rate parity, purchasing power parity, the fisher effects and expectation theory that are inter-related to each other?

[xiiaolih]

ya I undertand that forward rates is determined by interest rate. I am asking is there any other inter relationship except this?

[xiiaolih]

How about the amount paid to outsourced suppliers (the final products)?

OK Sir Just for understanding purposes

[xiiaolih]

How about the retailer’s salesperson salary is that considered as variable or fixed cost?

1. the amount paid to external supplier is that mean direct material cost?
2. delivery goods=variable distribution cost?

Am I correct? Thanks

[xiiaolih]

1. Is that logically to apply value-based pricing for middle income group people? like talking about these group of people look for the products that are value for their money?

2. If apply market penetration for middle income grp, is that imply the quality of the products will be lower as well? becoz middle income ppl seek for both quality and price.
Thanks

[xiiaolih]

Sir, may I knw what testing we need to carry out to provide evidence for bad debt and provision of doubtful debt?

[xiiaolih]

ig

[xiiaolih]

this is for degree financial reporting exam purpose.

[xiiaolih]

Is revaluation reassessed every year? I thought revaluation is revalued regularly one and IAS 16 does not mention how many years considered as regularly?
I am looking for the similarities between PPE and IP in the measurement models.
As I know, One of the similarities will be PPE and IP both also got cost model (cost-accum depreciation-accum impairment). So, I would like to know is there some more similarities?

[xiiaolih]

yes IP= Investment property

[xiiaolih]

OK is that means if the audit appointment and removal are controlled by management, it will undermine the audit independence because the management may manipulate the auditor to do whatever they want as they can threat the auditor if u don’t do as to what I said, you will be saked. Besides, the auditor will not be objectivity when they carry out this audit because they are some factors which will influence the auditor judgement?
Am I right?
and may I know normally who will issue the engagement letter and the appointment letter to the auditors?
Thanks sir

[xiiaolih]

Other than there are both NCA, is there any other similarities?

[xiiaolih]

Thanks for ur help, I get what u mean

[xiiaolih]

I don’t understand what do u mean by there can be non current liabilities (ncl) which are not long term debt? is there any example of this kind of ncl?

Return on Capital Employed= PBIT/ Equity+ long term debt
so if that is the case we cannot find equity and long term debt, is that means we can use net asset (total asset-current liabilities)?

capital employed is it equal to net asset?
because sometimes I heard ppl say net asset is total assets- current liabilities but I also heard ppl say net asset is total assets-total liabilities. so I get a bit confused.

[xiiaolih]

Is that means if it is declared dividend AT SOFP DATE mean the shareholder ady vote on it and the dividend will be paid AFTER SOFP DATE so it will be record
AT SOFP DATE
dr retained earning
cr dividend payable
when it is actually paid
AFTER SOFP DATE (WHICH MEANS NXT ACC PERIOD)
dr dividend payable
cr cash/ bank
If it is proposed dividend AT SOFP DATE , it means that the shareholder haven’t vote on it. So we do not have to record anything currently unless the shareholder have vote on it.
Am I correct?

[xiiaolih]

that means there is no particular section specifically mentioned what is the duties of company secretary?

[xiiaolih]

The name of the question is golden dragon
I think it cannot be found in internet maybe too old alrdy

[xiiaolih]

There is nothing TNCA under finance lease
There is only mentions that
2002 2003
current liabilities
finance lease 3 5
interest payable 2 3

non-current liabilities
finance lease 42 50

additional information
interest on finance lease of Rm3 m is included in the interest payable charged to income statement.

For this part that u mentioned:
At the moment, without that information, the answer is a purchase of 10,000 (Dr TNCA $10,000 Cr Obligations under Finance Leases $10,000) and NO payments in the year – that is patently unlikely

Purchase of 10,000 should be included in financing activities add or minus?

[xiiaolih]

and also non current liabilities finance leases at year 2002 for 42 and at year 2003 for 50
so it is consider outflow or inflow?

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