Search found 69 matches
- 18 Apr 2023, 07:12
- Forum: General accounting and financial reporting discussion
- Topic: Consolidation when Sub is held for sales
- Replies: 0
- Views: 51338
Consolidation when Sub is held for sales
Hi All, just a quick question about elimination. Lets say The parent is selling the Sub and it's now classified as held for sales for 1000. So Parent DR asset HFS 1000 CR Investment in Sub 1000 As I understand, we still need to consolidate the sub until parent lost control, so when it's still "...
- 18 Apr 2023, 04:53
- Forum: General accounting and financial reporting discussion
- Topic: Question about Consol system
- Replies: 14
- Views: 19689
Question about Consol system
Hi All, Just quick question about consol system. In a big company with its consolidated system like SAP, is the elimination done automatically by the system so at year end, we don't need to do select with movements (investmentin Sub, dividend, etc) to eliminate? Also, once elimination entries are do...
- 17 Apr 2023, 23:32
- Forum: General accounting and financial reporting discussion
- Topic: Application of IAS36 and IFRS5
- Replies: 2
- Views: 11569
Re: Application of IAS36 and IFRS5
Hi Marek, thanks for the reply. Let's say I need to close the book right now, and need to make decision on this, so based on my hypnosis, I will do below approach. Step1 I do the impairment test for sub to determine its FV and book the impairment loss in Subs. Step2 Once I done the impairment journa...
- 17 Apr 2023, 10:15
- Forum: General accounting and financial reporting discussion
- Topic: Application of IAS36 and IFRS5
- Replies: 2
- Views: 11569
Application of IAS36 and IFRS5
Hi All Need some help at understanding real life application on ias36 and ifrs5. Let's say the parent owns 100% of the Sub for $1100. During the year, the parent decides to sell the Sub. As I understand correctly, before the sales, parent does the impairment test for the sub and it's determined that...
- 15 Apr 2023, 06:44
- Forum: General accounting and financial reporting discussion
- Topic: Goodwill on Statement of consolidated cashflow
- Replies: 2
- Views: 11791
Goodwill on Statement of consolidated cashflow
Hi Team just a quick question about goodwill on consolidated cashflow. As you know goodwill arises from the group elimination (between investment in sub and sub's equity). As the result, there will be a balance of goodwill sitting in the consol. balance sheet, lets say $100. When it comes to present...
- 15 Apr 2023, 00:28
- Forum: General accounting and financial reporting discussion
- Topic: IFRS 5 question
- Replies: 3
- Views: 12241
Re: IFRS 5 question
Hi Leo, thanks for the answer. Just to clarify a bit. on your reply below. What if from the step 1, the asset is on revaluation method and the value increase and hence increase goes to reserve (oci). What do we do with the reserve (oci) once the AHFS is sold, do we clear it to P&L, if so, what a...
- 14 Apr 2023, 13:04
- Forum: General accounting and financial reporting discussion
- Topic: IFRS 5 question
- Replies: 3
- Views: 12241
IFRS 5 question
Hi IFRS Gurus I got question in line with IFRS 5. As i understood, Before transferring the PPE to current asset and ready for sales, we need to determine the fair value first. When determining the FV. The FV is the lower of CA and FV minus cost-of-sales. Step 1....... Let's say, it is determined tha...
- 14 Apr 2023, 12:07
- Forum: General accounting and financial reporting discussion
- Topic: Ias 16 on revaluation method
- Replies: 1
- Views: 11106
Ias 16 on revaluation method
Hi Team Just a quick question about standard ias 16. If I opt to use revaluation model on my PPE, I wonder if it's common to use "value in use" method to determine the fair value. The "value in use" method is like the way how I assess the goodwil impairment of the asset. Regards ...
- 14 Apr 2023, 08:54
- Forum: General accounting and financial reporting discussion
- Topic: Cashflow using indirect method
- Replies: 1
- Views: 11213
Cashflow using indirect method
Hi All, I am trying to make sense of cashflow statement using indirect method. The main challenge is on the "adjustment for non cash item". I understand that some of the items include depreciation, revaluation gain, income tax, etc. And I can easily solve all the exam questions on paper. B...
- 14 Apr 2023, 00:07
- Forum: General accounting and financial reporting discussion
- Topic: NCI as per IAS 7
- Replies: 1
- Views: 11029
NCI as per IAS 7
Hi All
Just quick question, is there any specific treatment on NCI when it comes to consolidated cashflow?
Unlike consol BS, I look at the financial report for some listed Companies but it doesn't appear that the NCI is mentioned on the cashflow.
Regards
Sowrudy
Just quick question, is there any specific treatment on NCI when it comes to consolidated cashflow?
Unlike consol BS, I look at the financial report for some listed Companies but it doesn't appear that the NCI is mentioned on the cashflow.
Regards
Sowrudy
- 12 Apr 2023, 09:04
- Forum: General accounting and financial reporting discussion
- Topic: Journal entries for intra-group dividends
- Replies: 3
- Views: 12109
Re: Journal entries for intra-group dividends
Hi Leo, would below be correct then if the one who declared th3 dividend is the sub?
Sub.........
Dr retained retained earnings 100
Cr cash 100
Parent..............
Dr cash 100
Cr dividend income 100
While elimination........
Dr dividend paid (equity account) 100
Cr retained earnings 100
Sub.........
Dr retained retained earnings 100
Cr cash 100
Parent..............
Dr cash 100
Cr dividend income 100
While elimination........
Dr dividend paid (equity account) 100
Cr retained earnings 100
- 12 Apr 2023, 05:10
- Forum: General accounting and financial reporting discussion
- Topic: Journal entries for intra-group dividends
- Replies: 3
- Views: 12109
Journal entries for intra-group dividends
Hi All Just want to get some clarification on intra-group journal entry in Relation to group elimination. Overall since retained earning of the group doesn't move, but I need to reduce the "dividend income" from the group, that means I need to have another debit to balance the movement in ...
- 11 Apr 2023, 23:53
- Forum: General accounting and financial reporting discussion
- Topic: Intragroup Dividend Elimination
- Replies: 4
- Views: 12898
Re: Intragroup Dividend Elimination
Hi Marek, in this case (on statement change of equity), as we already know the nci number at the high level, we can just minus the total number of any particular equity item movement with its corresponding nci. Just say if the total movement of Retained earnings is 10, and the total nci in BS is 4, ...
- 11 Apr 2023, 10:59
- Forum: General accounting and financial reporting discussion
- Topic: Intragroup Dividend Elimination
- Replies: 4
- Views: 12898
Re: Intragroup Dividend Elimination
Hi Marek, I found that we don't need to work out the nci for every transaction because nci is reported at the high level. So from the group balance sheet, I guess we just need to eliminate in full any intra-group transaction, while nci is presented separately on high level based on the total of each...
- 11 Apr 2023, 05:31
- Forum: General accounting and financial reporting discussion
- Topic: No need to eliminate from BS on intra-group dividends
- Replies: 1
- Views: 11045
No need to eliminate from BS on intra-group dividends
Hi All I notice that when it comes to intra-group dividends (paid in cash), we only need to reverse from the p&l side not the BS. The reason because the entity that declared dividends (DR retained earnings, CR cash) and the one receiving the dividends (CR dividends income, also part of retained ...
- 11 Apr 2023, 00:16
- Forum: General accounting and financial reporting discussion
- Topic: Determining goodwill
- Replies: 9
- Views: 15850
Re: Determining goodwill
Hi Marek, it's an job placement exam at the end of my internship with a medium size private accounting firm. They examine what I have learned during the internship to decide whether to offer real employment.
- 10 Apr 2023, 12:55
- Forum: IFRS-related topics
- Topic: P&L account for subsidiary elimination
- Replies: 1
- Views: 1101
Re: P&L account for subsidiary elimination
I think I figure out, it will not affect P&l because the opening balance of the retained earnings, doesn't include that (the RE at the time of acquisition) from the sub, so when it's eliminated, then it will bring back the retained earnings to "normal" position that it would be without...
- 10 Apr 2023, 11:11
- Forum: IFRS-related topics
- Topic: P&L account for subsidiary elimination
- Replies: 1
- Views: 1101
P&L account for subsidiary elimination
Hi all IFRS Gurus, I am about to finish my study about group consol, but get stuck on this case below. When it comes to elimination for intra group transaction, quite often we adjust the retained earning. For example: - Inventory sales among the group (assuming nothing comes out to the external), I ...
- 10 Apr 2023, 06:35
- Forum: General accounting and financial reporting discussion
- Topic: Intragroup Dividend Elimination
- Replies: 4
- Views: 12898
Intragroup Dividend Elimination
Hi All, Quick question about dividend elimination. Intra group dividend elimination. Just say I Parent owns 60% of Sub1, and Sub1 owns 60% of Sub2, as per the structure below. Parent ....Sub1 60% ......Sub2 60% During the year, Sub2 pays dividend to Sub1 amounting to $1000. From the group level, thi...
- 10 Apr 2023, 03:23
- Forum: General accounting and financial reporting discussion
- Topic: Determining goodwill
- Replies: 9
- Views: 15850
Re: Determining goodwill
Thanks All
As far as fair valued is concerned, can I actually measure the fair value of the Sub using EBITDA multiple and perpetuity growth method if I have the EBITDA number from the past 5 years?
As far as fair valued is concerned, can I actually measure the fair value of the Sub using EBITDA multiple and perpetuity growth method if I have the EBITDA number from the past 5 years?
- 09 Apr 2023, 13:43
- Forum: General accounting and financial reporting discussion
- Topic: Determining goodwill
- Replies: 9
- Views: 15850
Re: Determining goodwill
Thanks JRSB So just say if I were working as an accountant and my boss gave me a balance sheet of the new company he just bought/acquired, but he didn't tell me the fair value, is it common for accountant to go ahead using the equity to work out the goodwill by assuming the fair value is equal to eq...
- 09 Apr 2023, 11:41
- Forum: General accounting and financial reporting discussion
- Topic: Determining goodwill
- Replies: 9
- Views: 15850
Determining goodwill
Hi Team, Sorry If I posted too many questions in a day, but exam is close and I need help My question is about determining goodwill during the group consol. As i understand, goodwill is simply the difference between the equity value of the Sub and the consideration paid. From what I found on the Int...
- 09 Apr 2023, 07:39
- Forum: General accounting and financial reporting discussion
- Topic: Post acquisition elimination
- Replies: 1
- Views: 11273
Post acquisition elimination
Hi All I am still learning about group consol and I got a couple of questions after learning about IAS 36. In determining goodwill, we determine the goodwill after we eliminate the Sub's equity at the time of acquisition. And that is done during the consol level. My question is, when we consolidate ...
- 07 Apr 2023, 13:18
- Forum: IFRS-related topics
- Topic: Incremental Borrowing Rate
- Replies: 4
- Views: 1543
Re: Incremental Borrowing Rate
Hi JRSB, some follow up questions below. On the below reply "ie based on the rate they use to borrow a similar amount of cash as the lease liability." If I already have a short term 6 month loan with my bank with rate of 3%. So to work would the IBR for my new 5 year lease, can I use that ...
- 07 Apr 2023, 08:50
- Forum: IFRS-related topics
- Topic: Incremental Borrowing Rate
- Replies: 4
- Views: 1543
Incremental Borrowing Rate
Hi team, I am struggling with incremental borrowing rate atm. I have read all the materials on the internet but all of them are simply copy-paste theory without practical example on how to determine the IBR. I wonder if you have any practical example or excel working that illustrate how the ibr is c...
- 06 Apr 2023, 11:41
- Forum: IFRS-related topics
- Topic: Question about ifrs 16
- Replies: 1
- Views: 1043
Question about ifrs 16
Hi team Have a question about lease accounting from lessors side. Just say I am a lessor and I am leasing my car to my client for 1000 a month with optionto buy the car with $1. My calculation in excel will show lease investment at the end of the contract is $1. Question: what happen if the client d...
- 03 Apr 2023, 12:58
- Forum: IFRS-related topics
- Topic: About Non-controlling Interest
- Replies: 4
- Views: 1572
Re: About Non-controlling Interest
Thanks Leo,
Is it correct for me to say the G'ownership on CC is 70% but the NCI of CC is only 35% (being 51%* 70%)?
Is it correct for me to say the G'ownership on CC is 70% but the NCI of CC is only 35% (being 51%* 70%)?
- 03 Apr 2023, 03:19
- Forum: IFRS-related topics
- Topic: About Non-controlling Interest
- Replies: 4
- Views: 1572
About Non-controlling Interest
Hi Team Now I am learning about non-controlling interest, and have a quick question. Just say I am operating a company called "grandpa corp". And grandpa owns 52% of Mommy. And Mommy owns 70% of child, while child owns 40% of grand-child; per structure below: Granpha ------> Mommy corp 51%...
- 31 Mar 2023, 05:36
- Forum: IFRS-related topics
- Topic: Profit from intragroup inventory sales
- Replies: 1
- Views: 1033
Profit from intragroup inventory sales
Hi Team I have a question about Intra-group transactions with inventories. I understand that as a group, we needs to eliminate the sales & COGS (profit) derived from intragroup sales when doing group consol. The way we do it is to identify the QTY of that particular inventory sourced from interc...
- 27 Mar 2023, 13:18
- Forum: IFRS-related topics
- Topic: Operations or Investment
- Replies: 2
- Views: 1034
Operations or Investment
Hi team Just quick question about Classification of asset. Just say if I run a hospitality business and own 10 hotels. The hotels are my main cash generating income. Questions: can the hotels be considered investment property because guests who stay in the hotel literally paying for accommodations &...