[asma88]

Hello,
I am appearing for audit (f8) in March 2016 attempt. By that time all papers upto F9 and professional ethics module would be cleared. Can i submit the RAP in period 32?

[asma88]

Correction: Interest being 12 %**

[asma88]

Got it, they assumed a grossed goodwill, calculated notional impairment and gave share to NCI.

Regarding the last part where you calculated the impairment attributable to parent – you’re saying that in group account questions where goodwill is carried at proportionate basis and impairment is stated in the question; the impairment figure actually represents the decrease in value only attributable to parent’s share of goodwill?

[asma88]

Ah.. so the profit already contains the impairment loss. That clears it up. Had it been last year*s profit n loss extract then i guess we’d be treating it as I did above.

Just so I understand the double entry for this loss goes something like this

Dr rev reserve 25000
Dr impairment loss 10000
Cr asset 35000

Is that right?

[asma88]

Reposted:

Regarding example one in chapter 3 (from open tuition course notes), the revaluation loss for the year amounted to 35000 when revaluation surplus relating to asset stood at 25000.

Here are what my entries looked like in statement of changes in equity.

Reduce revaluation reserve by 25000.

Charge remaining loss of 10 000 to net profit for the year as impairment loss (as in other comprehensive income format)

Please explain why this wasn’t done in the answer.

[Author]

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