F7 - Study Text - Reporting possible error.

[kennychua]

Hi,

With references to Edition 3, Version 1 of GTG F7 Study Text 2011, page 188 and 189

There is a few error on these pages.

1) The example given under "2. Reducing balance method" is for straight line method
2) The example given under "3. The units of production method" is for reducing balance method.
3) Furthermore, the same example state that "If the depreciation rate is applied as a percentage, it should be applied to the original cost and not to the carried down value net of deprecation".

I believe this is wrong, as (despite the wrong heading) this example is for reducing balance. The depreciation rate should be applied to the carried down value net of deprecation.

3) Although there is a Test Yourself 6, there is no example given for "Units of production method"

Regards,
Ken.

[Apurva]

Thanks for pointing out these irregularities...will be updating in the next study text...