[kk-@]

I want to find the post acquisition profit , so that we can distribute it between parent and nci ,now I just want to know post acquisition profit should be 33000 or 30500?

[kk-@]

Thanku you so much

[kk-@]

Hello
That was mistake I wrote 7000
Profit after tax is 7500
And 35% of it = 2625

That is printing mistake , it is 7500 not 7000

[kk-@]

I think answer should be d option.

As in service contract , revenue should be recognised over the time not at the end of third year . So every three year revenue should be recognised related to service contract according to time.

[kk-@]

Your answer is correct b also you can calculate like this
Asset cost. 90000
Less : govt grant. (15000)

Asset cost. 75000
Useful life. 9 year
Depreciation for the year = 75000/9 = 8333

Carrying value at the end of year = 75000-8333 = 66667

[kk-@]

As we acquired only 35% (3500/10000*100) , we will recieve only 35% profit after tax
So post acquisution profit = 7000
Our share = 7000*35% = 2625

For dividend , assosiate is giving dividend 0.50 per shares
We hold 3500 shares
So we will recieve divudend of 1750(3500*0.50)

[kk-@]

Carrying amount of asset is 2.47m
Fair value of asset is 2.5m
Cost to sell is 0.5m

We are using revaluation model
Always remember when we use revaluation model , then at the time of classification of asset as held for sale we will revalue asset , the revaluation gain will be recorded at oci and cost to sell will be recorded as impairment cost in p&l

Lower of carrying value and fair value less cost to sell can be applied only on cost model not revaluation model

So revaluation gain = 0.30m(2.5-2.47 )
Which will be recorded at oci

Depreciation for the year = 130000
Cost to sell ( impairment ) = 50000

Total charge to p&l = 180000

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