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Sir, if it’s true then the ans given in the class note has to be amended as 4/14 instead of 0.4.
It is chapter 12 1b
Thank you
It definitely decreases.
Suppose, parent co disposes 10% of equity of a Sub while it was previously holding 70%.
Now its equity on the sub will be 60% only.
The NCI figure will be decreased by X suppose.
We are paying X+ Sth for the decrease( Suppose X plus $2 million)Thus our Controlling Interest Figure is decreased by $2 million.
Joint Venture is sth to be accounted as equity method.
Joint Operations is sth to be prepared a separate Financial Statements in a note, and presenting the parent share of the items in its financial statements, right.
Those covering this topic is IFRS 11, right.
1) Provisions is not a category of contingent liability. Only they have the same IFRS.
2) Contingent liability is not recorded, only disclosed.
3) Contingent liability are basically for future events and rarely for present events which do not have reliable measurements.
4) Deferred consideration is not the same as contingent liability.
Sir, are my statements true?
Sir, so most probably this question number 2 of December 2008 must be out of date.
(a) The project plan shows a number of planned activities. Explain how each of the following three activities
contribute to the testing and quality of the software for CaetInsure:
(i) System testing;
(ii) Acceptance testing;
(iii) Data migration. (9 marks)
(b) Evaluate the alternative strategies available to ASW’s project manager to address the slippage problem in
the CaetInsure project. (10 marks)
(c) As a result of your evaluation, recommend and justify your preferred solution to the slippage problem in the
CaetInsure project. (6 marks)Am I right?
Sir, In no 2, there should not be (Cr Inventory 300) because there is no effect on group inventory.
The only entry is:
Dr Investment on Associate Dr 300
Cr. Consolidated Reserves Cr 3000Is that Okay?
Thank You in advance.
2. Parent sale to Associate, pup is 1000, Associate % 30
Dr.Consolidated reserves 300
Cr. Inventory 300
Valuation of associate fall by 300.Is this right or wrong?
Sir, I couldn’t get it. I want to get it with a straight example.
1. Associate sale to parent, pup is 1000
Dr.Consolidated reserves 1000
Cr. Inventory 1000
Valuation of Associate has no effect2. Parent sale to Associate, pup is 1000, Associate % 30
Dr.Consolidated reserves 300
Cr. Inventory 300
Valuation of associate fall by 300.Is this right or wrong?
“Failing to plan an assignment adequately”
does that mean that there was a material mistake in the FS but he couldn’t detect it?
:)sry for the vague question and thank you very much for the attempt.
I meant what mistakes of an auditor while auditing might lead him to the court?if this is still not precise then I can try again.
thank you again.
Thank you so much.
That was really helpful. Yes, my original query didn’t mean that at all.suppose sales revenue has been overstated by 10000 and cost of sales has been overstated by 10000 ,here the effect on profit is null as both of them have been overstated.How will materiality be calculated in this case?
suppose the preset materiality is 15000.thank you.
I think it’s more like intimidation rather than self-interest,what do you think?
The other thing is that I guess the second example above meant that the auditor is advocating on behalf of client when someone else is taking legal action against the client or when someone is being sued by the client instead of auditor himself being sued.
thank you
