CA FIN EP - （更新）已上传文件

Happybanana

Sorry, I just listed points for you guys to consider, you need to work out the answers yourself - please let me know if I missed anything. I was typing these with a glass of wine on hand, so don't trust 100%

dongdou

原帖由 Happybanana 于 2010-8-1 21:35 发表
Sorry, I just listed points for you guys to consider, you need to work out the answers yourself - please let me know if I missed anything. I was typing these with a glass of wine on hand, so don't tru ...

This might however bring up your best performance???? I'm only joking.

Thanks heeps for your help. I need to sort out mine and other people's ideas and put it altogether.

fengqingyang

Anybody can help for B (a) credit risk? I am not sure should imparement bond be included in allowance for impaired receivables or reduced the carrying amount of asset directly. Thanks heaps.

fengqingyang

原帖由 fengqingyang 于 2010-8-7 17:11 发表
Anybody can help for B (a) credit risk? I am not sure should imparement bond be included in allowance for impaired receivables or reduced the carrying amount of asset directly. Thanks heaps.

up up

Happybanana

原帖由 fengqingyang 于 2010-8-7 17:11 发表
Anybody can help for B (a) credit risk? I am not sure should imparement bond be included in allowance for impaired receivables or reduced the carrying amount of asset directly. Thanks heaps.

fengqingyang, you should include the impairment of bond in the imparied receivable, as it says "table does not include the FEL corporate bond; however, iCycle does consider this investment to be part of ‘receivables’ for financial statement disclosure purposes"

fengqingyang

Thanks very much for your reply. But i am still a bit confused. As per AASB 139 para 63, "if there is objective evidence that an impairment loss on loans and receivables or HTM imvestmetns carried at amortised cost has been incurred........ The carrying amount of the asset shall be reduced either directly or through use of an allowance account. The amount of the loss shall be recongised in profit or loss". My understanding is the company can choose any one the the methods to record impairment bond in balance sheet.
"Table does not include the FEL corporate bond; however, iCycle does consider this investment to be part of ‘receivables’ for financial statement disclosure purposes", could it be the fair value $$  of the bond as at 30/06/2012 that will be included in "neither past due nor impaired" in a (ii); the impairment amount will be reduced bond carrying amount directly? i.e. Dr: Fair value loss Cr: Corporate bond
Please correct me if i am wrong.
Thanks

Happybanana

You are welcome. thanks for the points:)

1 - it says "During the year, $6,200 of receivables previously provided for were formally written off."

Which means in the year before FY2010, there was a journal entry to provide for the $6,200 impairment by: Dr. Impairment loss Cr. FEL corporate bond (this is reduce the asset balance directly) or Provision for impairment (this is so called an allowance account). But the company chose to use the allowance account.

During FY2010, te $6,200 were formally wrttien off, so the journal entry was: Dr. Provision for impairment (the allowance account) Cr. Corporate Bond (reduce the asset value)

2 - the corporate bond is a financial asset, there are four categories of financial assets, FEL corporate bond belongs to "Loans & Receivables" or "HTM" catetory (depends if the project specifies the category, I haven't read in details of part A), but nomatter which category out of these two, it should be subsequently measured at "Amortised Cost" - not fair value (not fair value loss account as well) as you said.

You need to use the excel formula to calculate the Amortised Cost as 30 June 2012. The calculated amortised cost less the impairment amount is the carry value for disclosure purpose.

This is what the project background try to say.

Happybanana

Good luck for the EP submission tomorrow!

fengqingyang

Hi Happybanana,
You are genius.
Thanks again.
Sorry no points for you today.

Happybanana

No prob....good luck!

fengqingyang

原帖由 Happybanana 于 2010-8-7 21:06 发表
No prob....good luck!

Hi Happy Banana,
I got stuck for FEC in part (c) liquidity risk.

As no national amount has been provided for FEC, how should cash flow of FEC be traded? I did some calculation based on the AUD/USD(+/-10%)but got two different national amountS. So so confused!!!

Thanks

Happybanana

Forward exchange contracts (FEC) to buy US dollars/sell Australian dollars at a fixed rate (average rate for the contracts is A$1 = US$0.80). The notional amounts of these contracts are set to be equal to 50% of USD-denominated forecast purchases of bike frames (none of these purchases are firm commitments).

The A$/US$ spot rate at year end (30 June 2012) was US$0.90. Both exchange rates (contracted 0.8 & spot rate 0.9) need to be used to calculate FEC's FV.

Will this background info help?I didnt do calculation myself so I am not sure why it gives you two different amounts based on the AUD/USD (+/-10%). Maybe you can discuss with Babypig given he/she would have done calculations?

fengqingyang

原帖由 Happybanana 于 2010-8-8 19:31 发表
Forward exchange contracts (FEC) to buy US dollars/sell Australian dollars at a fixed rate (average rate for the contracts is A$1 = US$0.80). The notional amounts of these contracts are set to be equa ...

Some people used 50% amount of accounts payable ($1,465,556 x 50%) in US account, but it does not make sense for me.

猪猪的宝贝

搞作业搞的我累死了，一般这个时候我早进入梦乡了的。。。

现在就希望get it over done with!

谢谢快乐香蕉前辈！！！！

aprilapple