Topic test Aeolus - FRA

CFA Level II FRA
#1

Could someone please explain me the difference between the PV of lease payments Viz. 710 in q2 and 606 amount used for capitalising in Q3?

#2

606 is from the vignette. one of the guys already estimated that the pv of leases as 606 for year 2015

#3

But then if I discount PV at 2016 end one more time by 6% , it doesn’t give me 606.

So should we just assume two different PV for different questions?

#4

yes

#5

Thanks

#6

Have just done this vignette. OK, the 606 comes from the text. But I assume it is a year end figure for 2015. Then for Q3 to calculate depreciation and interest expense for 2015 we would need a 2015 beginning of year amount, not?

And they use the 606 x 6% for interest expense???

The other thing I don’t get, Q6. Which sector was allocated the most capex on a growth basis? Why do we compare capex with total assets and not EBIT?