[jordan224]

this is what I’ve been learning, ill present it in bullet point:
-ifrs 15 covers variable consideration clearly, unlike ias 18
-ifrs 15 considers time value of money. When we receive payment in arrears/advance, we will recognise interest income/expense
-ifrs 15 recognises the timing of consideration received clearer, at a point of time or over time
-ifrs 15 gives clear treatment to multiple element arrangement, last time there are many method but ias 18 and 11 doesnt provide clear cut guidance on which method and when to use
-ifrs 15 gives clearer disclosure guidance
-ifrs 15 is more faithful to the framework, last time the income recog in construction contract is based on % completion, failed to meet definition of income
-ias 11 and 18 do not faithfully represent the nature of transaction, whether good/service or construction, also there are inconsistencies within

[jordan224]

so it’s not 60%x12 + 40%x8=10.4, Dr P or L Cr provision? Instead we only take 12 into account as the amount with highest probability? what about 50% 50%?

[jordan224]

hmm, under revaluation model, revaluing above the value of asset would be permissible right? as far as i know, we are not allowed to revalue above the value of the asset under cost model.

[jordan224]

if im not mistaken, notional goodwill came once right in past year question between 2012-2015 (i forgot exactly which one), but i remember that we calculate that if the entity use partial goodwill method, and the impairment reach not only goodwill, but other asset.

so it is like, if my goodwill (partial) is 100 and my share in subsidiary is 80%, then to calculate impairment, I grossed up my goodwill first, 100x(100%/80%) = 125. Then I add it to fair value of net asset at date of reporting, compare it with recoverable amount. Assume the impairment loss is 200.

To find out the allocation of impairment loss in the asset, that’s when we deduct notional goodwill of NCI, which is the grossed up amount before, 125-100=25. After that, 200-25 = 175. This 175 is allocated to parent goodwill, reduce it fully to 0 (100-100), then the rest of 75 is allocated to (let’s say) PPE. And for this PPE, we separate further 80%x75=60 to parent and 20%x75=15 to NCI.

So, in CSOFP later
Goodwill: 100-100
PPE: xxx-75
Retained earning: yyy-100-60
NCI: zzz-15

I might be wrong, please check and correct me

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