Search found 23 matches
- 06 May 2022, 05:50
- Forum: IFRS-related topics
- Topic: Investment in associate - Impairment?
- Replies: 5
- Views: 1205
Re: Investment in associate - Impairment?
Is it being closed because it was a failure and has no value left, or perhaps for other reasons and you'll get a return of capital when it is closed down greater than your investment? Hi JRSB, it's expected by my management that my company will not get any return/proceeds/cash flows back upon volun...
- 04 May 2022, 09:03
- Forum: IFRS-related topics
- Topic: Investment in associate - Impairment?
- Replies: 5
- Views: 1205
Investment in associate - Impairment?
Hi everyone, would like to seek your advice on the case below: All the investors have decided to close down an investee (recorded as an Associate in my book) voluntarily in the next financial year. Is this considered as an impairment indicator for the investment in associate in the current financial...
- 11 Apr 2022, 18:27
- Forum: IFRS-related topics
- Topic: Goodwill calculation
- Replies: 10
- Views: 3226
- 11 Apr 2022, 18:23
- Forum: IFRS-related topics
- Topic: Goodwill calculation
- Replies: 10
- Views: 3226
- 11 Apr 2022, 14:49
- Forum: IFRS-related topics
- Topic: Goodwill calculation
- Replies: 10
- Views: 3226
Re: Goodwill calculation
Hi Leo, thanks a lot for your illustration! So effectively there's a gain on bargain purchase of $14 recognised in consolidated P&L?
- 11 Apr 2022, 14:45
- Forum: IFRS-related topics
- Topic: Goodwill calculation
- Replies: 10
- Views: 3226
Re: Goodwill calculation
the 70 will be going to the previous owner so it's not in S's net assets anyway, before or after Hmm as mentioned S will issue new shares to P and give P a 70% shareholding. P is not buying any shares from the previous owner, nor paying them. To account for the share issue, I suppose the cash consi...
- 11 Apr 2022, 08:48
- Forum: IFRS-related topics
- Topic: Goodwill calculation
- Replies: 10
- Views: 3226
Goodwill calculation
Hi everyone! would appreciate your kind advice on the case below: Company S's current financials: Net assets 50 Total equity 50 - Share capital 30 ($1 per ordinary share) - Retained earning 20 Company S will be issuing 70 new ordinary shares to Company P for a total cash consideration $70. As a resu...
- 08 May 2021, 18:03
- Forum: IFRS-related topics
- Topic: Equity transactions of Associates
- Replies: 1
- Views: 960
Re: Equity transactions of Associates
Sorry guys, I'm getting lost and I think my example above is confusing. Please allow me to edit my example and questions. A holds a 100% interest in B and B holds a 60% interest in C (a subsidiary of B). On 1 Sep 2020, there's a share swap arrangement in which B issued new shares for $2m (to C's NCI...
- 07 May 2021, 20:58
- Forum: IFRS-related topics
- Topic: Equity transactions of Associates
- Replies: 1
- Views: 960
Equity transactions of Associates
A holds a 100% interest in B and B holds a 60% interest in C (a subsidiary of B). On 1 Sep 2020, there's a share swap arrangement in which B issued new shares for $2m (to C's NCI) to acquire the remaining 40% interest in C. As a result of the share swap, A's holding in B dropped from 100% to 40% (be...
- 07 May 2021, 04:44
- Forum: General accounting and financial reporting discussion
- Topic: Partial Disposal of Subsidiary (to Associate)
- Replies: 5
- Views: 6718
Re: Partial Disposal of Subsidiary (to Associate)
Thank you very much Marek. after reading it halfway through, I think i won't apply this advanced valuation :lol: Btw about the computation of the "carrying value of investment retained", what do you advise? One more question here, do you think can we apply Purchase Price Allocation method ...
- 06 May 2021, 19:24
- Forum: General accounting and financial reporting discussion
- Topic: Partial Disposal of Subsidiary (to Associate)
- Replies: 5
- Views: 6718
Re: Partial Disposal of Subsidiary (to Associate)
(2) I see. So we take the value of new share issued as fair value
What if it's not on market terms?
What if it's not on market terms?
- 06 May 2021, 11:02
- Forum: General accounting and financial reporting discussion
- Topic: Partial Disposal of Subsidiary (to Associate)
- Replies: 5
- Views: 6718
Partial Disposal of Subsidiary (to Associate)
Hi everyone! Would appreciate very much if anyone could shed some light on the case below: A acquired 100% of B (total 40 shares) for $50k in 2019. Say on 1 Sep 2020, B issued another 60 shares for $80k to a third party, making its total number of shares become 100. As such, A's shareholding in B ha...
- 06 May 2021, 07:13
- Forum: General accounting and financial reporting discussion
- Topic: Joint Venture - Indirect Holding
- Replies: 9
- Views: 5829
Re: Joint Venture - Indirect Holding
Thanks! It helps my FS disclosureJRSB wrote: ↑04 May 2021, 20:00 From memory this company has something similar, See note 9 of accs. JV with further subs (also with NCI etc)...
https://find-and-update.company-informa ... ng-history
- 30 Apr 2021, 18:28
- Forum: General accounting and financial reporting discussion
- Topic: Joint Venture - Indirect Holding
- Replies: 9
- Views: 5829
Re: Joint Venture - Indirect Holding
Thanks Marek! I think I have more confidence to deal with this JV now
- 30 Apr 2021, 17:23
- Forum: General accounting and financial reporting discussion
- Topic: Joint Venture - Indirect Holding
- Replies: 9
- Views: 5829
Re: Joint Venture - Indirect Holding
As far as I understand, basically the carrying amount of investment in Joint Venture = investment cost in X + A's share of post-acquisition profit/OCI of X group?
- 30 Apr 2021, 05:25
- Forum: General accounting and financial reporting discussion
- Topic: Joint Venture - Indirect Holding
- Replies: 9
- Views: 5829
Re: Joint Venture - Indirect Holding
Thanks Marek.
So in A's Consolidated Balance Sheet, it will have Investment in Joint Ventures (X,Y and Z) and share 49% of post-acquisition change in their (X,Y and Z) net assets, right?
So in A's Consolidated Balance Sheet, it will have Investment in Joint Ventures (X,Y and Z) and share 49% of post-acquisition change in their (X,Y and Z) net assets, right?
- 29 Apr 2021, 13:02
- Forum: General accounting and financial reporting discussion
- Topic: Joint Venture - Indirect Holding
- Replies: 9
- Views: 5829
Joint Venture - Indirect Holding
Hi all, I would like to ask your professional advices on this issue: - A has a 49% share in a joint venture, X. - X has 2 100%-owned subsidiaries, Y and Z. In X's perspective, I understand that X needs to consolidate its subsidiaries, Y and Z. In A's perspective, A will account for X using equity me...
- 23 Jun 2020, 17:38
- Forum: IFRS-related topics
- Topic: Joint Venture - Share allotment
- Replies: 11
- Views: 2336
Re: Joint Venture - Share allotment
Yeah, this is hard one. One could also look at this transaction as follows: A and B received 500k 'for free' which they contributed to JV I guess it's crucial to understand the economics behind the arrangement- can you please shed more light yvonne? Sure, probably can think that A and B contribute ...
- 23 Jun 2020, 17:06
- Forum: IFRS-related topics
- Topic: Joint Venture - Share allotment
- Replies: 11
- Views: 2336
- 23 Jun 2020, 11:17
- Forum: IFRS-related topics
- Topic: Joint Venture - Share allotment
- Replies: 11
- Views: 2336
Re: Joint Venture - Share allotment
I just come across the paragraph below when reading IAS 28: https://www.iasplus.com/en/standards/ias/ias28-2011 Initial accounting. An investment is accounted for using the equity method from the date on which it becomes an associate or a joint venture. On acquisition, any difference between the cos...
- 23 Jun 2020, 10:28
- Forum: IFRS-related topics
- Topic: Joint Venture - Share allotment
- Replies: 11
- Views: 2336
Re: Joint Venture - Share allotment
Alright, let me look into the JV agreement in detail. Your advice is very helpful! Thank you.
- 23 Jun 2020, 09:20
- Forum: IFRS-related topics
- Topic: Joint Venture - Share allotment
- Replies: 11
- Views: 2336
Re: Joint Venture - Share allotment
Thanks for the response!
So for entity A, even though it has received 500,000 shares, this transaction is to be recognised at nil value?
Or should I recognise the difference $500,000 as other income in P&L, treated like "negative goodwill"?
So for entity A, even though it has received 500,000 shares, this transaction is to be recognised at nil value?
Or should I recognise the difference $500,000 as other income in P&L, treated like "negative goodwill"?
- 23 Jun 2020, 06:25
- Forum: IFRS-related topics
- Topic: Joint Venture - Share allotment
- Replies: 11
- Views: 2336
Joint Venture - Share allotment
Hi everyone, Company A, B and C have come into a JV agreement and set up a JV, Company D. There're several milestones to be completed in this JV and each completed milestone will trigger issue of new shares by Company D. Upon completion of the first milestone, Company D will allot and issue shares t...