Search found 6 matches
- 02 Aug 2020, 19:55
- Forum: IFRS-related topics
- Topic: Impairment of subsidiary
- Replies: 7
- Views: 6012
Re: Impairment of subsidiary
The impairment of the subsidiary is also reversed at the consolidation level in addition to the usual elimination of subsidiary share capital against the cost of investment. The impairment is a company level accounting entry. If you have goodwill relating to this business combination, this may be su...
- 02 Aug 2020, 19:52
- Forum: IFRS-related topics
- Topic: Capitalize unconsumed office supplies?
- Replies: 22
- Views: 4698
Re: Capitalize unconsumed office supplies?
Office supplies are not inventories unless you are in the business of selling office supplies. They should be, strictly, in scope under IAS 16 but generally are of low value and are expensed as purchased. Low value capitalisation threshold is not determined explicitly by the Standard but as Auditors...
- 20 Jul 2020, 10:21
- Forum: General accounting and financial reporting discussion
- Topic: Disposal of subsidiary
- Replies: 7
- Views: 4864
Re: Disposal of subsidiary
Thanks all - I agree that IAS 10.9c would apply from a sellers perspective. Appreciate all input on this!
- 19 Jul 2020, 09:15
- Forum: General accounting and financial reporting discussion
- Topic: Disposal of subsidiary
- Replies: 7
- Views: 4864
Re: Disposal of subsidiary
Hi pib_acco, thanks for your input. I was leaning towards your sugestion but just wondering whether the context of IFRS3:45 would apply since the buyer would go with that accounting treatment on their end. And also given that I have the new info on the price adjustment before the issuance of the FY1...
- 18 Jul 2020, 19:07
- Forum: General accounting and financial reporting discussion
- Topic: Disposal of subsidiary
- Replies: 7
- Views: 4864
Re: Disposal of subsidiary
Hi nauman, thank you for your response. Perhaps to clarify further, I understand the buyer will adjust the provisional purchase price to the final price after considering certain net working capital adjustment, as part of the PPA exercise where the fair value of net assets acquired are ascertained.
- 18 Jul 2020, 15:53
- Forum: General accounting and financial reporting discussion
- Topic: Disposal of subsidiary
- Replies: 7
- Views: 4864
Disposal of subsidiary
Hi all, i have a scenario on the below for which any input is appreciated! Company sold subsidiary (held at cost because exempt from consolidation under IFRS 10) to a third party in August 2019. The final consideration is subject to the purchase price allocation (PPA) exercise done by the buyer and ...