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P7 55%. Passed this time, thanks to God for making it possible. Thanks to Kaplan and Open Tuition. Did a lot of combination of studies to get the understanding of certain topics. To others that didn’t make it, sometimes,like in my case, the issue isn’t that you don’t know it…it usually is time management. This time, I ensured I answered EVERY question. Gambling with 75% to 90% attempt wasn’t an option for me. I had to attempt 100% to ensure there was no excuse for marginal failure! Strive to understand the techniques in answering the questions because that’s what the examiner wants to see…then make sure you attempt all questions spending more time with questions that have more marks allocation. Don’t give up…keep trying. Remember, winners don’t quit and quitters don’t win.
@weechee said:
HiAlthough i did not attempt this question I am not entirely sure IAS 28 applies.
It seems that IAS 28 Investments in Associates, will only apply once the shareholding is between 20-50% and there is exercise of significant influence of the operations of the Associate.
10% shareholding does not seem to qualify here, unless the substance of the transaction is such that significant influence appears to be exercised in the absence of other increased shareholding.
It is likely that this transaction will be treated as a Financial Asset, subjected to FVTPL or FVTOCI, and should probably be governed by IFRS 7 & 9 which has to do with Financial Instruments & its Disclosures.
The terms ‘modified and unmodified’ are used for the report. The terms ‘qualified and unqualified’ are used for the opinions.
You can have an unqualified opinion but a modified report IF there is an emphasis of matter paragraph or an other matter paragraph.
For your report to be Unmodified, there must be an unqualified opinion AND no emphasis of matter/other matter paragraphs.
Any qualification of opinion or presence of any of the above paragraphs make the report MODIFIED.
I hope i’ve answered your question.
If the subsidiary is a major component of the group or it represents a separate major line of activity for the group then it’s operations have to be shown in the Statement of Profit or Loss account but as a discontinued operation. It will be shown separately from the Continued operations of the Group in The Group statement of profit or loss.
The parent company will derecognise the cost of investment in its Individual Statement of Financial Position and recognise the profit or loss on disposal with the associated tax liability, if a profit is made.
In the Group statement, the fair value of assets and liabilities at the date of disposal will be ascertained derecognised from the Group statement of financial position.
The fair value of the Net assets at disposal date will be deducted from the disposal proceeds to recognise the profit in the Group statement of profit or loss. The tax liability from the parent individual statement of profit or loss will be the same as that to be recognised in the Group statement of profit or loss. This is because the tax man taxes the parent company for the transaction and not the Group.
I hope i’ve explained it well.