Got Question P2 one....

BPP Q31,

Convertible bond without conversion option interest is 8% (2.3) , payable in arrears at nominal interest rate of 6% (1.8).

My answer:
Dr Retained earning 2.3
Cr liability 2.3

Dr liability 1.8
Cr bank 1.8

So, retained earning should be reduced by 2.3 . right ?



Book ANSWER: Group Retained earning reduced by 2.3 - 1.8 = 0.5 ?

Why is like that ?

we need full question to interpret it

if merely deduce from the answer

I would guess that the company accountant made a mistake in the finance cost ( nominal rate instead of effective interest rate )

hence the 1.8 is already included in the account. Therefore reduce another 0.5 to reflect the accounting treatment

anyone would share how you prepare for your coming exam? and how to study efficiently? especially those part-timer student.

Any spotted Question for P2? Kindly share pls

dun spot question

later not accurate

u're only going to regret

just study all

Can anyone who are attending the revision class for P7 by Ms. Sheila borrow me the revision notes to photocopy?

Exam is coming soon

It's the time to run our engine in turbo!

Thanks! : )

I need it too

This post has been edited by wwc88: Oct 30 2011, 06:46 AM

hi, guys... Question about P2. Employee benefits

Why benefits paid reduce Fair value of Plan assets ?

not sure correct or not

plan asset = funds to be paid to employee

when u paid benefit, it is taken from plan asset

so FV will drop

LOL. I hate P2.

Damn, exams are like a little more than a month away.

buckle up guys

P2 is behind me now .... p3 p5 p7 in front @_@

I am taking P3 too. Feeling nervous about P3 even after attempting questions. I had a nightmare very recently, in it, I opend the exam papers to find all questions unfamiliar! : (

I suppose the message to me from that nightmare is, don't skip topics/concepts etc

wow..i'm still in the midst of reading + remembering the theories. @@ havent do questions YET.

I go chapter by chapter, after attending class and reading up on notes, i chose a question on that topic to attempt. I did the question opened-book. I know that i cannot refer to the book during exam but it is at least a start for me. If not I will never get started. I have a very kind lecturer who has been helping me to mark my essay questions.

This post has been edited by Doreamon10: Nov 2 2011, 11:09 AM

Any tips for next sitting?

Are you talking about P3? So far my lecturer never say anything, he insists that we should NEVER spot questions/topics. He will most probably "kill" us if we do. lol

Spotting is risky. unless your lecturer or yourself have very good ESP. Better not topics/questions-spot.

Out of curiousity, can one be registered with both ACCA and CIMA at the same time???