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wow that's very useful!!

Hi All, My company currently has a fully impaired subsidiary. I would like to calculate the recoverable amount to assess if any impairment should be reversed. Do you guys have any advice on how to calculate the recoverable amount using the value in use method? Do you measure the recoverable amount o...

Hi All, Need your advice regarding this scenario: Related companies A and B share the same office. Office rental contract with landlord is signed with A only. A pays the office rent to the landlord and bills B for usage of office as a way to allocate costs in budget. However, from this year onwards,...

Dear All, I've never done winding up of companies before but there's a dormant entity in my company that they are planning to wind up/deregister soon. What are the activities and common journal entries that an accountant have to perform to support the deregistration process? Do we have to zerorise e...

sgaccountant I would do it the simple way, if the initial amount is really 895.46 and interest rate is 5% than the first year I would : Dt Loan 895.46 Cr cash 895.46 at 31.12.N: Dt Loan 45 cr interest 45 at 01.01.N+1: dt cash 50 cr loan 50 at 31.12.N+1 : dt Loan 45 (940-50)*5% cr interest 45 This l...

JRSB wrote: ↑14 May 2022, 18:00 have you reversed engineered a final £1200 repayment, charging 5% interest, to get to an initial loan of £895?

Yes it was reversed engineered just for illustration purpose.

There is interest but as the loan is an intercompany loan, there's no loan/interest payments needed until expiry. Are my entries correct in such a situation?

Hello, I am trying to understand the treatment for changes in loan payments. <Please refer to the attached PDF> At initial measurement, loan receivable was calculated with expectations of loan being paid only at the year of the loan expiry in 6 years time. However, in year 2, the loan was paid parti...

Hi Guys, I interviewed for a job and this technical question was asked of me: You are a fruit seller. You sold an apple (purchased at $2) for $5. As part of sales campaign, you gave a bag (purchased at $6) free of charge with the purchase. What would be your double entries? This was my answer: Debit...