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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Special purpose entity
In Guidance co (sep/dec 19), we have transferred the asset, I’m confused regarding the treatment of it, what would be the original correct entry for the transfer of asset? if investment in spe to the carrying value of asset is the correct one then why have we added back the asset in the adjusted total assets? is it because we are approaching the question as a group now? because from the perspective of the individual book the asset has been genuinely transferred.
I feel your pain. It’s hard to work out the specific adjustments. I suspect that the marks were given for approach rather than agreeing with the answer.
Parent; DR INVESTMENT IN SPE CR PPE
SPE: DR PPE CR SC
Group: PPE is in group SFP