[limette]

In 1(a) I calculated loss on subsidiary disposal in CP&L because net assets od Ginny at disposal date increased significantly. At acquisition they were 114, next year 118 and at disposal plus 9/12 * TCI 48. For the building I assumed that 2 floors are PPE (owned-occupied by parent and by Boo-for group purposes BOO is also treated as owned occupied), remaining 8 floors as investment property. I calculated depreciation for PPE part only and revaluation gain for PPE included in OCI, revaluation for investment property in P&L.
Provision for repair I reversed-it is not in line with provision definition.
My main concerns regard revenue part-I think that discount should be included in price determination, opposite entry would be CR provision as customer will meet contract target.
Credit notes I also included as decrease of revenue.
1(b) here I mainly focused on accountign treatment and mismatch of showing remeasurement in OCI and rest of effects in P&L.
1(c) typical ethical question-I wrote taht directors are concerned to act ethically and honestly, about faithful presentation, about self-interest etc.

Question 2.
(a)Functional currency-I believe it should be dolar, yen, dolar. The third company is acting more like distribution centre and it’s prices are determined by Suntory.
(b) and (c) I don’t remember tchem well
impairment of intangible assets and depreciation based on economic useful life
(c) related party-I write only few sentences as normally writing definiton who and what is related party would take me 20min…
question 3
(a) fair value measurement of financial asset. Company used level 3 inputs while level1/2 were available and thanks to this overstated assets.
(b) I don’t remember-maybe I will wrote later about it
(c) it was about valuation of net assets of acquired subsidiary and the fact that acquirer recognized gain on bargain purchase. I wrote that this may be indicator that fair value of net assets was not correctly measured as it was based on level 3 input cost-approach (cost of replacement). It would be better to use market-approach or income approach based on DCF method.

[Author]

Posts