F2 to learn Flashcards
cost of redeemable debt cash flows for IRR
T0 = (current market value)
T1-n = coupon rate x (1-tax rate)
Tn = redeemable price
For yield to maturity just don’t less the tax rate
Convertible loans
PV cash flows (redemption @Tn, coupon rate @ T1-n)
Equity BALANCING FIGURE
_____________________________
Cash from loan
Financial Liability classification
FV LESS transaction costs
FVPL or amortised cost
Financial Asset classification
FV PLUS transaction costs
EQUITY
shares for trading -> FVPL
Shares for holding -> FVOCI
DEBT
to maturity -> amortised cost
selling -> FVPL
holding then selling -> FVPL
How to calc bonus element of share options
no. full price shares can be bought with cash from options
Bonus shares BALANCING FIGURE
___________________________________________
No. option in existence
Deferred tax temporary difference asset or liability?
CA>TB = DT liab
CA<TB = DT asset
Goodwill
Cost of investment
NCI @ acq
(S NAs @ acq)
NCI
NCI @ acq
NCI% S post
Retained Earnings
100% P
P% S post
Investment in Assoc
cost of investment
P% A post
(impairment)
(PUP P% only)
Share of assoc profits
P% A PAT
(imp)
(PUP)
Consolidated reserved (S & A)
100% P
P% s post
P% A post
(GW imp)
(inv imp)
(PUP)
Net cash flow from acquisition of sub=
cash paid on acq - cash held by sub @ acq
working capital movements =
(closing - subs) - opening
cash flows
for Divis to parent use
for Divis to NCI use
For Divis recevied use
for Divis to parent use RE & profits
for Divis to NCI use NCI & TCI
For Divis recevied use profits & OCI
