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Hello,
Working through Dec 09 (Grange), the parent wishes to restructure their company due to “savings”. While the savings cannot be accounted for (due to no obligation, nor addressing whom will be effected), the impairment of fixed/tangible assets must be recognised.
We start with:Carrying value of net assets 862
revaluation surplus 4
Legal claims provision (7)
investment property 2giving the total net assets a value of 861
my question is, why isn’t the profit on the disposal of a subsidiary, the change in contingent liability recognition and the loss on a disposal of a subsidiary (sitin) not included to get the new net assets figures. These figures change values in the profit and loss reserve, and OCE, so why are they excluded?
Any information regarding a solution to my question would be great, my only guess is that it somehow effects the subsidiaries and not the parent directly, and only information directly involving the parent 100% would be changed.
Any further information regarding this question will gladly be given if requested.
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Can anyone help?
This is ‘ask the tutor forum’. I think it would be appropriate to ask in P2 forum if you want students to answer?
That’s because the question says about reorganising ‘parent company’ and not ‘group’. This is what I’ve gathered.
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Thanks for a reply, but I haven’t been able to get any of the tutors to talk on any of my threads recently. Usually they’re very speedy, but it has been almost a week. I just wanted to know if anyone could contribute at all.
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Thank you, I wish you the very best also. Also to everyone else sitting this paper! 😀
Hi Rupesh
You may be surprised to know that I don’t carry a P2 revision kit with me wherever I go. I’m away from home last week and this coming week. I DID have a P2 kit with me for one evening last week (Thursday) and was able to answer a few P2 ask the tutor outstanding questions but (sadly) I appear to have missed yours.
I shall try to get hold of a revision kit this week and, if I can, I’ll get back to you. But may I ask you to post again as soon as you read this because, if it’s my name at the end of a thread, I think that the matter is cleared
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Hello Mike,
Thanks for getting in touch, I hope you are well. I hope I didn’t cause any offence or perceive myself as ungrateful. I do truly appreciate the help you give us all, and hope I can one day repay the favour.
Hi Rupesh
Please confirm before I go any further that this is the ACCA version that you are looking at and not the Kaplan version – none of the figures you quote are in Kaplan so I presume it’s the ACCA “real” question I should be looking at.
But do please confirm that for me
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