Forum Replies Created
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- August 30, 2025 at 9:44 am #719668
Hi,
I think there were errors in the video, so please just refer to the class notes for the correct answer, sorry.
Thanks
August 30, 2025 at 9:42 am #719667Hi,
Sorry, we can only provide exam advice and cannot provide advice in relation to client services.
Thanks
August 30, 2025 at 9:39 am #719666Hi. The technical article is correct in the treatment of contingent consideration in that it is treated under IFRS 3 and measured at fair value. It is therefore included in the fair value of the considerationin the group accounts. Thanks
August 30, 2025 at 9:31 am #719665Hi. Payback isn’t relevant to the accounting for leases. It might be something to consider in Financial Management. Thanks
August 30, 2025 at 9:28 am #719664Yes, I need to update the recordings for IFRS18 but haven’t had time to do so. The changes are more a cosmetic/presentation aspect and you should still arrive at the same profit figure.
Thanks
August 30, 2025 at 9:26 am #719663Hi,
Fundamentally I’d look to use double entry debits and credits as this then allows you a more thorough understanding of how entries are accounted for. You can just learn by heart where things go but this an lead to mistakes if things change up slightly in a question.
What is it that you do not understand about T-accounts?
Thanks
August 18, 2025 at 1:56 pm #718826It is a FV adjustment as it took place at the acquisition date. Thanks.
August 18, 2025 at 1:55 pm #718825Agreed. The materials are correct.
August 18, 2025 at 1:52 pm #718824Hi,
Before we do any intra group elimination we need to ensure the individual accounts are correct first. We therefore need to account for the interest in full first, thus deducting it from the subsidiary books first.
Thanks
August 18, 2025 at 1:49 pm #718823You use the fair value increase and depreciate it over the remaining life of the PPE.
August 18, 2025 at 1:47 pm #718822Yes.
August 18, 2025 at 1:46 pm #718821Hi,
The key to exam success is to practise the exam standard questions under exam conditions. This means not using any notes, not looking at the answer for help, using the exam software to answer the questions and doing them to time. The more you do this the more your chances of passing increase.
Keep up the hard work.
Thanks
August 18, 2025 at 1:43 pm #718820Hi,
It all looks right as it specifically says in the question where both depreciation and amortisation are charged. What is being done follows the instructions in the question.
Please let me know if this doesn’t answer the question.
Thanks
August 8, 2025 at 2:53 pm #718675Hi,
You are right that there are few changes but these changes impact a lot on the presentation of the statement of profit or loss. You will need to ensure that you get this correct in the exam, so I’d definitely look to purchase a new revision kit to ensure that you are getting the answers as per they should be for the real exam. If you use our class notes then that will be fine in relation to a substitute for the study text.
Thanks
August 8, 2025 at 2:51 pm #718674It is a fair value adjustment as it is taking place within the group accounts, not the individual accounts.
August 8, 2025 at 2:50 pm #718672An impairment is a downward revaluation, so they are talking about the same thing and are treated in the same way too.
July 21, 2025 at 9:59 am #718503Hi,
There isn’t a contradiction and the standard is merely reflecting the best possible use of the asset. We take the higher of the value in use and fair value less costs to sell as that is what we would decide to do with the asset, regardless if the other amount is less than the carrying value of the asset.
If the value in use was the higher of the two then we would continue to use it to bring economic benefit to the entity. If the FVLCTS was higher then we would be looking to sell the asset as that would bring the most benefit to the entity.
Thanks
July 21, 2025 at 9:56 am #718502Hi,
You need to look at the specific criteria in IAS 38 to help with this. The business would need to meet all the criteria to ensure that they are capitalising the costs appropriately. In an exam question it would be quite clear as to whether they are or are not meeting the criteria.
Thanks
July 21, 2025 at 9:55 am #718501This is another FV adjustment at acquisition, so required again to adjust the net assets of the subsidiary and the PPE line in the CSFP at the reporting date.
Thanks
July 21, 2025 at 9:55 am #718500This is another FV adjustment at acquisition, so required again to adjust the net assets of the subsidiary and the PPE line in the CSFP at the reporting date.
Thanks
July 21, 2025 at 9:53 am #718499Hi,
This is a fair value adjustment on acquisition. You would adjust the PPE for the initial FV uplift above the carrying value ($20 million), so adjusting S’s net assets at acquisition.
Usually there is no change in the FV since the acquisition date but in this instance there is, which is $24 million. So adjust S’s net assets at the reporting date by this amount and also the PPE line on the group SFP.
You would then also need to look at the movement in the FV adjustment and give P and S their shares in the appropriate workings (NCI and Group RE).
Thanks
July 15, 2025 at 9:59 am #718415Hi,
Sorry to hear about the attempt in June and I’m sure that you are in a much better position to achieve your aims in September.
There is a big change in the syllabus with IFRS18 replacing IAS1. It isn’t a huge technical knowledge change involving debits and credits but it does have an impact on the presentation of the statement of profit or loss. I’d therefore recommend looking at acquiring the new materials to ensure that you are not losing marks due to using the old IAS 1 presentation.
Thanks
July 8, 2025 at 1:37 pm #718183Hi,
The class notes have been updated and the video lectures will be updated in due course. You will not be disadvantaged by using the current video lecture as the only change is to the presentation of the statement of profit or loss.
Thanks
July 8, 2025 at 1:36 pm #718182Hi,
We only need to account for the goods-in-transit for the PUP as that is what will have been sold at a profit between the group companies and has not yet been sold outside of the group.
We aren’t told anything about the other $1.6 million that is due between the group companies, so we have to assume that the have been sold outside of the group and no PUP adjustment is required.
Thanks.
July 8, 2025 at 1:32 pm #718180Hi,
The class notes have been updated for the new IFRS 18 replacing IAS 1. The videos will be updated in due course but you can easily use the current videos as the change to IAS 1 only impacts the statement of profit or loss, and it is easy to spot the changes.
Thanks
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