Term
Fair value of assets, liabilities and contingent liabilities were the same as their carrying amount except for a legal claim that had been included as a con liab. At acq the FV was 500k, it was later settled for this amount. |
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Definition
| In W2, reduce the NA @ acq by 500 as a record of the con liab. |
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Term
| Following acq, sub sold parent goods at a mark-up of 20%. The goods cost sub 600k and 1/3 remained in inventory at y.e. (SOFP Q) |
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Definition
| w6, PURP to subsid of 40k. This gets deducted from w2, NA @ y.e. |
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Term
| At y.e., parent had inter-comp R'ables balance due from sub of 5 mill and assoc 8mill. These amounts were shown in trade receivables and payables accordingly. |
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Definition
| Reduce Consol CA by 5 mill and CL also by 5 mill. 8 mill doesn't matter |
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Term
| Parent has undertaken annual impairment reviews of GW. At the prev y.e., an impairment loss of assoc of 5 mill was recognised. An impairment loss of 1.5 mill in respect of sub has been recognised for this y.e. SOFP |
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Definition
W2, deduct the impairment for this year for sub. Also in w5 RE.
For Inv in assoc working deduct 5 mill for impairment to date |
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Term
| Sub sold goods to parent costing 600k at 20% MU. 1/2 these goods remain in parents inventory. I/S |
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Definition
| In w2, Consol schedule. Reduce subs cost of sales by 60k PURP. |
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Term
| Parent has undertaken impairment reviews of GW. At last y.e. impairment losses of sub1 of 100 k have been recognised, this is then disposed of. At this y.e. imp losses of sub2 30 and assoc of 10 have been recognised. I/S |
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Definition
w2, consol schedule, deduct 30 from subsid 2.
w4, group loss on disposal, deduct GW imp to date from GW @ acq.
Assoc impair has no effect on I/S, a SOFP quesion would use this in inv in assoc working.
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Term
| Parent needs to recognise an impairment in its invest in associ of 50k. SOFP |
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Definition
w7, investment in assoc, remove 50.
This impacts the NCA, investments in associates. |
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Term
| Comp arranged to sell 250 finished goods with CA of £2.20 each. Order was negotiated at £2.30. However the customer is not taking order now so they're being placed in general inventory. Normal selling price is £2.50 with 50p commission. I/S |
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Definition
NRV is 2.50 - 50 = 2
=> inv write-down is CA(2.2)-2*250= 50k
Deduct this 50 from RE b/f and from w2 consol schedule inventory. |
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Term
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Definition
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