[Rubyta]

1. The factory site would have a market value of $24 million, $1 million of costs are estimated to
be required to demolish the factory and to obtain planning permission for the conversion, so fair value of factory site will be 24-1 = 23 ml

2. Net asset at acquisition date will be : 65 +23 =88 ml

3. Goodwill at acquisition date will be : 90 (Condiseration) + 22 ( NCI) -88 = 24 ml

4. Total value of CGU = 106 + 24 = 130 ml

5. Impairment amount = 130-100 = 30 ml

6 . Allocation impairment amount :

Goodwill : 24
Factory site : 4
Intangible asset : 0.75
PPE: 1.25

[Rubyta]

1) NCI at acquisition date ( when control achieved ) x

2) NCI share of post acquisition reserve to date of disposal x

3) NCI at disposal date =A

4) Increase in NCI on date of disposal = (A/20) x 10

[Rubyta]

If all segments satisfying 10% criteria have been disclosed & do not amount to
75% of total external revenue => additional operating segments should be
disclosed until 75% level is met

[Rubyta]

Material errors are corrected retrospectively, the same as for a change in accounting policy

[Rubyta]

Debit impairment loss ( P/L) and Credit OCI : 0,4 ml

value of debt instrument is not affected

[Rubyta]

Bond interest is paid annually as 31 Dec, we are calculating CV at 1 July , it means we have not paid interest yet.

[Rubyta]

Table 1 already included all miscellaneous transactions and Set up SPE entry , now we need to adjust to exclude the entry we have recorded . Last time we record : Debit Equity / Credit asset , so now we have to revert : debit asset/ creidt equity : 30

[Rubyta]

P Co had included the profit on this transfer as a reduction in its depreciation cost, and all depreciation is charged through cos.

Debit cost of Goods : 1.000
Credit NCA:1.000

and excess depreciation:

Debit NCA :200

Credit : Cost of goods : 200

1.000-200=800

[Author]

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