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excellent lecture thank you very much.
Mr. Little, can you help with this question?
Upon consolidation, you would need to have accounting policies of the parent and the subsidiary in line with each other. What would you do if material subsidiary is no longer a going concern. Here, the subsidiary’s Financial Statements would be on a cash basis. So would the reclassification of the subsidiary’s TNCA now go under CA of the group CSoFP?
@prateshramjohn, Well, that’s an interesting one! I wonder whether we might sensibly classify the subsidiary as an Asset Held for Sale, value it at fair value as at the date of reclassification and reassess at the year end.
There is, of course, the other problem that a ( to use your words ) “material subsidiary is no longer a going concern”. Might this not cast some degree of doubt on the ability of the whole group to continue? We would need to ask also why or how the parent has allowed this to happen and what the cause of the problems was.
I think, instead of thinking about reclassifying the subsidiary’s TNCA, we would rather reclassify the whole subsidiary under IFRS5 at fair value
@MikeLittle, Thanks alot. Never thought about classifying the entire subsidiary, but it makes alot of sense. Thanks again.
what about the materiality in joint audits? is it the same when it comes to assess the risk of material misstatement in the financial statements as a whole?
@barwazini, Well yes – just because you share the audit that doesn’t mean that your assessment of the materiality should change and that the level should double so that, when you look at two firms of auditors, they share the materiality between them!
Er, no! That clearly would be nonsense.
What I could see happening is that the two firms decide between themselves a materiality level and then both work to that level.
@MikeLittle, okay, thank you
I don’t see any difference b/n attending this lecture through this webpage & being actually in real class!!!!
I googled the Royle show! Great lecture x
Thanks for the lectures…Hope second time is the charm : D
@letsdothis, fingers, legs and everything else crossed!
am having a problem watching the lectures….anyone to help?
thanks for the lesson,it was great
The lecture refreshed me in the area of group audits and fair values. Thanks much.
congrats. i love the well summarised notes. they are so straight to the point. though p7 is highly technical, i pray that this time it will be a walk over!
Ralph Little’s dad wow, a small world. My claim to fame now LOL.
Congratulations, your son is a star and you are an equally good lecturer. Thank you for these lessons, they are a great help
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