Forum Replies Created
- Posts
statement of profit and loss is for the year so it won’t include fv adj if acq is in prior accounting period right?
OK understood… now on the other hand when we transfer our NA share to nci in transfer between owners we the group receives cash then why is that CR to NCI?
and what about impairment if it given in foreign currency as it occurs at y/e should it be converted at closing rate for goodwill calculated at y/e and what about goodwill at DOA it also includes impairment fig what rate this will be converted ?
my question is about the sale and finance lease back…
how does gain is spread in sale and finance lease back when the entry beingDR Cash CR Obligations under finance lease.
I know that when we acquire we have to pay 500,000… but how does this decreases NCI? The decrease wich i can understand is of NA transfered to group wich i think u have included in the 500,000 consideration but why also amount over the NA is deducted from NCI?
By discounting for one year 1500 is 2727.27 and u have cal. 2,790
and if my simple method is also correct then for how many years the “more than 5 years fig” should me discounted for?OK… got it… the payment was in next period and interest was separately accrued… thanks
we are bodyline and header is our supplier so yes out of sale of 1,750,000 20% relate to goods manufactured by header
It states here in the question:
Sales in the last 28 days of trading year to 30 september 20×3 were 1750000. Past trends reliably indicate that 10% of all goods are returned under the 29 day return facility. These are not faulty goods. Of these 70% are later resold at the normal selling price and the remaining 30% are sold as sale items at half the normal retail price.It is also stated above in the question that 20% of the total sales are from Header(Supplier) who sells stuff to Bodyline at a discounted price and at a markup on cost of 40% and so does not accept any warranty claims so we have to bear the cost of the Manufacturing faults of items bought by header so no refund is given by header but the other 80% sell at a mark up of 25% and we can recover the cost of goods that are returned as faulty from them
The issue is with the 28 day return policy provision…
Here’s what they’ve done at the back:
1.75m x 10% x 30% x 50% = 26250
1.75m x 20% x 10% x 70% x 40/140 = 7000
1.75m x 80% x 10% x 70% x 25/125 = 19600you mean to say that the purchases fig. in COS is not valid so we r adjusting COS so that the purchases fig. is adjusted right?
ok thanks and about this…
In a question in bpp the nci share of impairment was deducted from the W4B of NCI for p and l this seems correct but I didnt saw this impairment adj in your solutions or may b i have that question?
understood why revenue is adjusted and also why pup is adjusted but why is cost of sales adjusted with the vale of sale price?
Please clear me on this point first that was we deduct PUPs from profit by adding it in COS i think this was enough to take unrealized profit out so why also the sale and cos fig are adjusted isnt it double deduction of PUP?
Sorry for that confusion now i have repharsed the question
Port Acquired Alferd on 1st Nov 20X4 and
a $2.3m 12% loan to Alferd which was made by Port in 20W1 and is due to be repaid until 20Y6
INCOME STATEMENT FOR Y/E 31st DEC 20X4
Port(Parent). Alfred(subsidiary)
Interest received and recognized from Alferd 276
Finance cost charged by Alferd 276STATEMENT OF FINANCIAL at 31st DEC 20X4
Assets
NCA
Loan to Alfred 2300
Loan from Port. 2300Plz give me the treatment in consolidated Income Statement and also explain it plzzz thanks in advance…
But why cost to group of inventory is deducted from the COS what’s the reason for this treatment?
If there is already a revaluation reserve in the individual financial statements at end of year should we then add ret earnings and Reval reserves per q fig also ?