Search found 6 matches

by jonyicheng
02 Aug 2020, 19:55
Forum: IFRS-related topics
Topic: Impairment of subsidiary
Replies: 7
Views: 6015

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...
by jonyicheng
02 Aug 2020, 19:52
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4699

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...
by jonyicheng
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!
by jonyicheng
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...
by jonyicheng
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.
by jonyicheng
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 ...