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Hi,
The division figures i can see is 14,000 and 6,000. Total goodwill is 84,200. (OT note June 2011)
Looking at the group structure, the 30% NCI in K refers to the direct holding, so there is no need to add NCI goodwill from L. Also the question gives the K’s NCI goodwill ($15,000) directly, there is not need to change this figure.
Hope this helps.
Charge $10m to income statement doesn’t make sense to me either. The question doesn’t mention how the company settled the $10m. I assume it was settled by a bank loan, so the entry should be:
DR PPE $10m
CR Loan $10mI understand the $2m restoration cost should be capitalised according to IAS 16, so the depreciation charge will be based on the total $10m + $2m over 6 years and charge the depreciation to income statement.
The $2m provision for decommissioning should belong to a liability account in SOFP.
This $2m provision will stay in SOFP until the the date the actual restoration cost occurs at the end of the lease term, then the entry at that date will be:
DB Prov. for Decomm. $2m
CR Cash/loan $2mPlease correct if I’m wrong.
Thanks.
@jafarulhassan said:
ok..thanks julia…i just got it….it is the defference between redeemable and irredeemable loan notes…thanks againthx for reply. you are welcome.
@onesnow said:
Hello – Sorry, I am not answering your question. I just joined but have problem in downloading ACCA F9 course notes. Can I ask whether you can tell me how please? OnesnowHi, as you are a new member you may not know that it’s better to start a new post for your question rather than replying someone else question. You can find where to download the notes by going to the F9 forum’s home page at https://opentuition.com/groups/f9-financial-management/forum/
The post is called [F9 Course notes June 2010 exams] 3rd one down the list.
