Divine Word College of Legazpi >> this is our room.

[nhone2010]

nhone2010. Oo nga e, new chapter na. Kaso problem ko ngayon ay work. Haha. BIG 4 lang ang priority ko ngayon. Di naman ako nagmamadali magwork. Late na ko nagpass ng resume ko sa BIG4, siguro a week after results. Up to now wala pa ko narereceive na balita about my application, maganda naman grades ko. Hehe.

Hi QueenB: Try P&A if the Big4 haven't contacted you yet. eventhough P&A's international affiliation is not in Big4, I believe it's performance in the Philippines if ever meron magrarank, makapasok sya sa Big4 ng Philippines. You can also try Reyes and Tacandong.

You can also try asking your colleagues working in Big 4 if they can help you out to be referred in HR. Usually, may factor din yung referral from employees. Ang inuuna kasi ng Big 4 is yung na invite nila nung nasa review. Like Top 30 in First or Final Pre-board. Meron na kasi silang offer before pa lumabas ang result ng board exam. But knowing that you are from PUP right? don't be discouraged, Your school has a good name in Big 4. You can still wait kasi naghahire *** in Batches. But if need mo na talaga, open your doors to P&A and Reyes and Tacandong.

[IamQueenB]

Nagpass na din ako ng resume ko sa P&A. 4 firms lang ang pinasahan ko: SGV, P&A, Isla, and Manabat San Agustin. Sabay-sabay ako nagpass dyan. A week after the result siguro. Di ako nagpass sa Manabat Delgado kasi di ko type yung lugar. Dadayuhin ko pa.

[IamQueenB]

Madami na kong mga kakilala na sa SGV na nagwowork. Di naman masyado magagaling, mas matataas pa nga mga grades ko e. May iba naman natawagan na para makapag exam. Ako di pa natatawagan, yung friend ko ngang cum laude di pa din natatawagan. Ano kaya ang criteria nila sa pagpili, parang random lang. Hehe. Sabi last week na daw ngayon ng hiring sa sgv. Tanong ko po sa January po ba nagoopen pa ang Big5 for employment?

PS: Di po ako makapagPM sainyo.

[Larry Tan]

Madami na kong mga kakilala na sa SGV na nagwowork. Di naman masyado magagaling, mas matataas pa nga mga grades ko e. May iba naman natawagan na para makapag exam. Ako di pa natatawagan, yung friend ko ngang cum laude di pa din natatawagan. Ano kaya ang criteria nila sa pagpili, parang random lang. Hehe. Sabi last week na daw ngayon ng hiring sa sgv. Tanong ko po sa January po ba nagoopen pa ang Big5 for employment?

PS: Di po ako makapagPM sainyo.

Malaking factor sa kanila track record or reputation ng school. However, may nagbalita sa akin, na even among CPAs who graduated with honors, medyo may discrimination, most schools P30k ang signing bonus ng cumlaude, in one school in Metro Manila, balita ko P5k lang. Anyway, that's life. Life rule # 1 "Life is unfair, get used to it." -- from Bill Gates.

[kekurt]

hello po..im glad nakabalik din ** sa wakas di kc ** makalog-in.btw, pa help nmn po ** with this problem.

PHILCPA ADAPTED:BOND PAYABLE

In order to finance Verba company's planned expansion, 10% p5000000 face value bonds were issued for p5300000, plus accrued interest on december 1, 2007. Interest is payable November 1 and May 1.

By the end of 2009, the book value of the bonds was reported at p5150000. the straight line amortization method is used. on September 1,2010, Vverna decided to reacquire the bonds at face value plus accrued interest

Q; what should verna record as gain or loss on this early extinguishment of debt?

a)102000 gain
b)102000 loss
c)198000 gain
d)198000 loss

medyo nalito ** kc hindi given *** year dito sa bond kaya wlang aqng basehan pagdating sa pag amortize.tnx po sa mkakasagot..

[nhone2010]

hello po..im glad nakabalik din ** sa wakas di kc ** makalog-in.btw, pa help nmn po ** with this problem.

PHILCPA ADAPTED:BOND PAYABLE

In order to finance Verba company's planned expansion, 10% p5000000 face value bonds were issued for p5300000, plus accrued interest on december 1, 2007. Interest is payable November 1 and May 1.

By the end of 2009, the book value of the bonds was reported at p5150000. the straight line amortization method is used. on September 1,2010, Vverna decided to reacquire the bonds at face value plus accrued interest

Q; what should verna record as gain or loss on this early extinguishment of debt?

a)102000 gain
b)102000 loss
c)198000 gain
d)198000 loss

medyo nalito ** kc hindi given *** year dito sa bond kaya wlang aqng basehan pagdating sa pag amortize.tnx po sa mkakasagot..

Hi Jhoven:

Since gain/loss ang pinapahanap **, there are two things to look for: 1) Book Value of the bond at the REACQUISITION DATE and 2) The Reacquisition Price.

The amortization method was stated in the problem to be Straight-Line.

How do we get the Book Value of the bonds at REACQUISITION DATE?

The term/maturity date of the bonds was not given BUT there is a CLUE about the amount of amortization per period (I will use the per month amortization).

We are given the BV of the bonds at December 31, 2009 (stated in the problem : by the end of 2009) of P5,150,000. It means to say that out of the P300,000 original premium on bonds, 50% or P150,000 were already amortized. It also means that the amortization per month is P6,000. This is computed by dividing the premium already amortized of P150,000 by the months elapsed from the time of Issuance up to the end of 2009 which in this case is 25 months.

Since we are now able to get the monthly amortization, we can now compute the BV of bonds as of September 1, 2010.
From Dec. 31, 2009 up to September 1, 2010, we can get the additional premium amortization of P48,000 (P6,000*8 months). Thus, the BV of the bonds as of Sept 1, 2010 is P5,102,000.

Another important information is the Reacquisition Price pertaining only to the bonds exluding the interest which in this case is at the FACE VALUE of P5,000,000.

Those two factors are the ones needed to compute the gain or loss.

The difference of the two is P102,000.
Is it a gain or loss?
Since we are looking at the perspective of Verna, the issuer, she was able to extinguish her liability with a book value (excluding interest) of P5,102,000 by paying only P5,000,000 (also excludes the payment for accrued interest) - this just means that she has a gain of P102,000 from the reacquisition.

The journal entry should be:

Dr. Bonds Payable P5,000,000
Dr. Premium on bonds 102,000
Dr. Interest Payable 166,667
Cr. Cash P5,166,667
Cr. Gain on early retirement 102,000
of bonds/reacquisition.

[kekurt]

thanks a lot po..i tatake note q this kind of problem!.galing ****..hehe

[kekurt]

hello kua rey..curious *** ** kua rey kc i think mahalaga maitindhn q po *** concept ng time value of money..i refer na dun sa wiley's reviewer pero may tanong parin sa utak q pagdating sa present value..
kc alm q present value of 1 means to say, *** im going to invest now to receive or paid an amount of 1..

may question is, dba when we are looking for the present value we are using the effective rate and it is also known as the discounted rate..gusto q *** malamn f tama ba *** naiisip q..discounted value is meaning to say discounted *** na in a way di kasma *** interest pure principal or ***?feeling q malaking mali naiisip q..tnx po

[kekurt]

isa po *** kua rey: medyo nahihirapan ** sa conjugal ang communal property relation in connection sa exclusive property.bka may tips ka for me to remember pagdating sa classification.

[nhone2010]

hello kua rey..curious *** ** kua rey kc i think mahalaga maitindhn q po *** concept ng time value of money..i refer na dun sa wiley's reviewer pero may tanong parin sa utak q pagdating sa present value..
kc alm q present value of 1 means to say, *** im going to invest now to receive or paid an amount of 1..

may question is, dba when we are looking for the present value we are using the effective rate and it is also known as the discounted rate..gusto q *** malamn f tama ba *** naiisip q..discounted value is meaning to say discounted *** na in a way di kasma *** interest pure principal or ***?feeling q malaking mali naiisip q..tnx po

Hi Jhoven.. thanks for your question...

You are actually getting the point and just need to solidify your understanding.

First of all you need to understand the use of present value. What is your best guess?

Well, simply the use of present value is to determine or just approximate the VALUE of a financial instrument NOW or AT PRESENT TIME. This is usually being used if there is no established market price for a certain financial instrument that is why we approximate it's value at the time of transaction (present value).

You are correct that discounted value is composed only of principal amount (excludes interest). We are getting the present value of FUTURE CASH FLOWS because the assumption those cash flows already involves an interest portion, that is why we use effective interest rate to determine how much of that future cash flows is for Interest and for Principal payment.

Since we are approximating the Value at the PRESENT, we should exclude the interest portion of the future cash flows. Remember interest runs from time of issuance of the financial instrument up to maturity date. On the issuance date, interest is still ZERO. The value at the issuance date is the PRESENT VALUE which we need to approximate or determine thru the process of Discounting.. :-)

Why effective interest? Because it is the market rate. It best reflects the interest being charge by other financial institutions to similar financial instrument. :-)

[nhone2010]

isa po *** kua rey: medyo nahihirapan ** sa conjugal ang communal property relation in connection sa exclusive property.bka may tips ka for me to remember pagdating sa classification.

For this Jhoven, I would refer you to textbook by Edwin Valencia entitled "Transfer and Business Taxation". There is a table in that book summarizing the difference in treatment of exclusive property between conjugal partnership of gains and community property.

[kekurt]

Hi Jhoven.. thanks for your question...

You are actually getting the point and just need to solidify your understanding.

First of all you need to understand the use of present value. What is your best guess?

Well, simply the use of present value is to determine or just approximate the VALUE of a financial instrument NOW or AT PRESENT TIME. This is usually being used if there is no established market price for a certain financial instrument that is why we approximate it's value at the time of transaction (present value).

You are correct that discounted value is composed only of principal amount (excludes interest). We are getting the present value of FUTURE CASH FLOWS because the assumption those cash flows already involves an interest portion, that is why we use effective interest rate to determine how much of that future cash flows is for Interest and for Principal payment.

Since we are approximating the Value at the PRESENT, we should exclude the interest portion of the future cash flows. Remember interest runs from time of issuance of the financial instrument up to maturity date. On the issuance date, interest is still ZERO. The value at the issuance date is the PRESENT VALUE which we need to approximate or determine thru the process of Discounting.. :-)

Why effective interest? Because it is the market rate. It best reflects the interest being charge by other financial institutions to similar financial instrument. :-)

wow kua rey thanks a lot po talaga..now i understand what is present value all about.solid n *** ngayon..hehe..especially dun sa nabanggit u sa issuance date na why u need to exclude the interest very helpful po **** *** best na example mu kua rey..i s'share q yan sa clasmte q..hehethanks ulit

[IamQueenB]

nhone2010

Kuya, tanong ko lang if may hiring pa ang ibang audit firms like sgv ngayon? Napagisip-isip ko kasi na gusto ko talaga magstart sa external audit. Iuupdate ko application ko just in case.

[kekurt]

kua rey

kuya ask po ask with regard sa topic na investment property..medyo nalito ** dun sa isa sa mga qualification compare sa owner occupied property..

in investment property:" property is held as finance lease and lease out under operating lease.."

its kinda complicated to analyze by making reference that finance lease and operating lease is different..i remember finance is a capital lease or just like an ordinary sale transaction where there is an evidence of transferring of risk and reward unlike the operating, operating is still the asset to be reported by the lessor..medyo contradictory *** words..

dun s owner occupied property:" property held as finance lease"

now its more hard for me to analyze this requirement kasi both may finance lease


ive tried to think *** first is with correlation ba sa tinatwag n propert interest held under operating where if qualified for the said requirement assume as finace lease kso owner occupied held din as finance lease..nalilito **

[stygium]

Pwede ko i-UP ang thread?

[kekurt]

pwedeng pwede **** po ata hehehehehe

[kekurt]

summer na naman and im craving to review my books hahaahah..preferably, im focusing now on advance reading on cost accounting and fa 3..making some refreshing principles on income tax and business..mas maaga mas mganda hehehehe

[stygium]

may grade na sa prodman kurt?

[kekurt]

hmmm *** pa po ** prodman eh..ano *** name mu sa divine?

[bluethirteen]

To all Divinian BSA undergrad, grad and CPA of DWCL, enter here. This would be our venue for inquiries and sharing. :-) this is Rey Vernon, Batch March 2010 graduate, a Divinian.. :-)

hi kuya vernon. si babylyn po to. hope you still know me. ano po kaya ang magandang idea for research? nakuha na kasi ng previous batches ang magagandang topics,eh