A news article discusses current or recent news of either general interest (i.e. daily newspapers) or of a specific topic (i.e. political or trade news magazines, club newsletters, or technology news websites). A news article can include accounts of eye witnesses to the happening event. It can contain photographs, accounts, statistics, graphs, recollections, interviews, polls, debates on the topic, etc. Headlines can be used to focus the reader’s attention on a particular (or main) part of the article. The writer can also give facts and detailed information following answers to general questions like who, what, when, where, why and how. Quoted references can also be helpful. References to people can also be made through written accounts of interviews and debates confirming the factuality of the writer’s information and the reliability of his source. The writer can use redirection to ensure that the reader keeps reading the article and to draw her attention to other articles. For example, phrases like "Continued on page 3” redirect the reader to a page where the article is continued. While a good conclusion is an important ingredient for newspaper articles, the immediacy of a deadline environment means that copy editing often takes the form of deleting everything past an arbitrary point in the story corresponding to the dictates of available space on a page. Therefore, newspaper reporters are trained to write in inverted pyramid style, with all the most important information in the first paragraph or two. If less vital details are pushed towards the end of the story, the potentially destructive impact of draconian copy editing will be minimized.
Page 1 of 2 QUESTION (ICAP E S2004 Q2) Omega Limited has been engaged in construction business and wins a contract to construct a flyover at “cost plus 10%” with a completion period of one year. The company and the customer agree that the element of borrowing cost in the total cost will be determined according to IAS 23. The customer agrees to make progressive payments of Rs. 20 million each on the first day of fourth and seventh months and the balance on completion of the project. The management estimates cost of the flyover at Rs. 90 million. The company’s bankers agree to finance the project @ 10% mark-up per annum and disbursement thereof will be made in installments of Rs. 30 million each on the first day of first, fourth and seventh month. The company realizes at the end of third month that second installment of disbursement by the bankers need to be paid to the company’s creditors a month later. Therefore, on receipt of second installment, it is temporarily invested to fetch return of 2% to the company. All disbursements made are expensed out as costs. Required: Compute total costs of the flyover as per agreement between the company and the customer at the time of completion of the project. (15) IAS 23 – ICAP E PPQnA – Kashif Adeel/www.sikaca.com Page 2 of 2 ANSWER (ICAP E S2004 Q2) $ Flyover cost of construction 90,000,000 Borrowing costs capitalized W1 3,650,000 Total costs 93,650,000 Working 1 Borrowing Progress Net Month Description Loan Time costs @10% payment Amount Rs. 1 Installment I 30,000,000 30,000,000 3/12 750,000 4 Installment II 30,000,000 60,000,000 4 Progress Payment 20,000,000 40,000,000 3/12 1,000,000 7 Installment III 30,000,000 70,000,000 7 Progress Payment 20,000,000 50,000,000 3/12 2,500,000 12end Progress Payment 50,000,000 - 4,250,000 Temporary investment income April (Rs. 30,000,000 x 2%) (600,000) 3,650,000 IAS 23 – ICAP E PPQnA – Kashif Adeel/www.sikaca.com
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