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Hello Dear,
It is the first question of IFRSDip Dec 2022 exam.
I found the following:
– no notional goodwill calculated, when the impairment calculated, the parent goodwill at acquisition added to the net assets of subsidiary.
– the impairment applied to both parent and NCI.
I think you agree with me, something is wrong at the answer.
Otherwise when we do the notional goodwill? and when not?
and when NCI affected and when not?
Thanks

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The big problem is the time and time, at least half an hour more, to be moderate.

[coop]

Thank you, Mike

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Hello Mike,
At the exam today, the sales were from the subsidiary to the parent, and there was URP from inventory still kept by the parent.

So, for the consolidated cost sales: we have to add the URP to the cost sales of the parent, then add the cost sales of the parent, and the sub cost sales time apportinate. ok?

For the revenue, will the sales will be eliminated separate from the apportion time for the subsidiary revenue, or eliminated first to its revenue then the apportion time will done on the net ?
thanks

[coop]

We consider only the post acquisition of 3 months, this what is related to the parent.
As we need to do the time apportionment only for the joint part of 480,000, but the 60,000 is not joint part, so it will be eliminated first.
So, we will take out the $60,000 from the $480,000
and the remaining ($480,000-60,000) = $420,000 , then we will do the time apportionment : 420,000× 3/12 = $105,000

Sorry, for prolongation

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The cost sales amount of $480,000 is including the purchases of $60,000
therefore, we first eliminate the $60,000, and the remaining will multiplied by 3/12?
what is the other viewpoint?

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OK, thank you

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in other words : the amount of (“20,000 × 3”), why not multiplied by 3/12 the acquisition period of the financial year ?

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I mean that :
(480,000 x 3/12) – (20,000 x 3)

the above formula should have been :
(480,000 – “20,000 × 3”) × 3/12

why haven’t been that way?

[coop]

Ok, i found number 2 is not requested at the question.

which of following statements would indicate that a performance obligation is satisfied over a period of time?
(1) RoPo Co’s performance does not create an asset with an alternative use to RoPo Co
(2) The customer has significant risks and rewards of ownership of the asset
A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

the answer is A
the answer is not clear , what does the statement mean ?

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OK, this is the head of the question (the question is from BECKER MOCK ONE ) :
RoPo Co has entered into a number of revenue based contracts during the year ended 31 December 20X6. The following information relating to three contracts is shown below:

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Ok, I am sorry, only the first point , whether the NCI affected by OCI ?

Thanks

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You mean the NCI will be affected by both OCI and depreciation ?

If so, the subsidiary profit at its books should be adjusted first, and that what we agreed shouldn’t be ?

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Is the following statement true ?

an example of faithful representation :

” Derecognising factored trade receivables sold without recourse to the seller”

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So, the transaction without recourse, should be recognised ?

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Thank you
My greetings to you .

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“we eliminate only the group share of the UNREALISED profits”

So,that elimination has an impact on the inventory ? in other meaning, should the inventory

(as an asset) be reduced by the eliminated part of URP amount ? that for the transaction with associate .

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That means, that the investment account includes the goodwill amount ?

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Ok, but would you, please, put that explanation in the form of accounting entries or T accounts?, it will be clearer.

and “Transferred from revaluation reserve (w (iv)) (2,400)”

“I take this as a transfer TO the revaluation reserve”

I am confused whether the transfer is from or to revaluation reserve, and do i always have to do that transfer, or only in this case?

and when eventually the asset will be sold, the revaluation reserve will be sent to (closed at) the retained earnings !! is that right?

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Thanks for the clarification
Thank you

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may be due to the holding paid for that goodwill before, therefore, it is deducted from the sales proceeds ?

[coop]

First,I apologize

i repeated the question to get the quicker response , as the exam time is very closed .

But you were quicker than i expected.

About the answer, that is clear now for the NCI.
But, for the goodwill !!

[coop]

OK, that is good.

Thank you

[coop]

I am sorry, please ignore the question

Thanks

[Author]

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