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There was an impairment loss on the foreign sub goodwill as well as an fx loss on translation.
Can’t remember if the other company goodwill was impaired or not.
Kevin – that’s pretty much exactly what I said. The consortium companies would be able to surrender/claim 70% or 30%.
I did questions 3 and 4.
Question 4 part a and d were pretty easy but b n c were awful. Zero marks.
That’s the only thing I can think of in the consolidation question I didn’t get right. I just took it all to p&l. Im sure there’s other things wrong tho
Yes, Shipshape was def the lessee.
I’m glad somebody else thinks the first contract didn’t contain a lease.
I said to depreciate the second right of use asset over the lease term.
A liability would also be recognised at the PV of the lease payments. Right of use asset = lease liability plus direct costs (don’t think there were any in question).
Don’t have a clue about that. That question was my weakest by a country mile. I left it until the end. Punted for principal on basis that they were liable for defects. If I get 1 mark I’d be happy.
I said the first contract didn’t contain a lease at all but unsure now.
Thought the second one was an operating lease because there wasn’t an option to buy the asset (at a reduced price) and the lease term wasn’t an extensive amount of the useful life. Only a few years from memory.Also went on to explain the 10% of sales, profits and operating costs to disclose a segment and that you need to report 75% of turnover into segments.
I put IFRS 8 states that an entity should report an operating segment if it is how the chief operating decision makers (CODM) look at segments within the company. This would be discrete information used by management to allocate resources to that segment. So Tybull would only be an operating segment if it is segmented by management.