Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › December 2010 Q1 premier
- This topic has 5 replies, 2 voices, and was last updated 8 years ago by MikeLittle.
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- May 26, 2015 at 2:55 pm #249187
Hi mike
Just a quick question, the solution does not recognise any impairement loss (other than add back of excess depreciation) in the statement of Income for the 1.2 million, point (i)
Is this because it was pre acq?
If there was a post acq impairement of TNCA in the sub would you recognise an impairement loss expense (if there was no revaluation reserv)Cheers
Hugh
May 26, 2015 at 3:15 pm #249195Without looking at the question ……
…….are you telling me that there was an impairment in the pre-acquisition period? If so then the impaired fair value would be included within the working W2 Goodwill
A post-acquisition impairment would go through the subsidiary’s statement of profit or loss, would reduce the post-acquisition retained earnings and that would affect both working W3 Consolidated Retained Earnings and working W4A Nci on the statement of financial position
Ok?
May 26, 2015 at 3:21 pm #249201That is perfect, cheers. The impairement was “at the date of acquisition the fair value of the subsidiarys net assets were equal to their carrying amount with the exception of property. This had a fair value of 1.2m below it’s carrying amount”… Solution dealth with it in w2 and w3, with only the add back depreciation appearing in profit or loss
May 26, 2015 at 4:11 pm #249240That’s good! Keep them coming – there’s only 7 clear days between now and the exam. Just 168 hours. And you’ll probably want to sleep during some of those hours!
May 26, 2015 at 5:21 pm #249291Thanks for that, I have to get onto my F5 from tomorrow , then I wont see F7 again until Monday night, 2 days before!! I have about 20 hours!
tell john he can expect a few questions!
May 26, 2015 at 5:24 pm #249293You can tell John yourself! You’re not getting me to do your dirty work
🙂
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