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Hi sir thanks for the reply
Sir in the BPP text book thay have calculated the CA for the year of disposal also is that method also correct.
No sir,
Actually in the BPP text book it is stated that there are variations that could be given.May it might involve some technical complcations
Sir i understood that part it was the answer i was looking for in my Complex Groups post.Actually the subsidiary had become an Associate of the Subsidiary in the year end.
Thanks
Thanks Mike Sir.I understood.
Eval Good luck for the Exam and Thankyou .(DOnt forget to wish me luck!!!!)
thanks Eva i understood that part 1 will not be consolidated in the parents results.But how will investment shown in the CFS will it be shown or not. and one more thing C co is the subsisiary of B Co on consildation wont it be shown on CFS.
Sir i wanted some help in dealing with the following situations..
1. A is parent Co.B is subsidiary of A with 60%.C is owned by B with a percentage of 20%.Now A also has 20%.Now effective interest of A in C will be 20% + 60% * 20% =32%.Now the parent does not own C how will we consolidate the results
Now as per the Answer you gave above in the BS we will not show Investment in Associate and only in the retained earnings we will include parents share and NCI will be 20% * 30% = 6%.Am i right in this.
Thankyou
Thank you Sir, I will just try to make sure i understand what you said.I am sorry but i am expecting a very tough paper this time i dont know why i feel that way so i want to make my self ready so that i can do most of the part of the paper atleast to achieve a passmark.
Now when we translate the Foreign subsidiary the total exxdiff are not shown in the income statement .we charge the total exxdiif with the tax rate increase the liability and instead of charging the income statement we charge the deffered tax beacuse as the deffered tax is related to an equity item we recognise the dr part of the transaction in the equity which will reduce the overall exdiif which is being shown in the OCI.Sir please correct me if am wrong.
Thankyou
well sir the tax base does not change but the carrying amount of the inventory in the group statement is changing because we are doing the adjustment and this gives rise to a temporary difference.
Hi Mike sir,
As per my understanding it does give rise to a deffered tax asset.Beacasue there will be a negative temporary difference between the carrying value of the inventory and it s tax base and this amount is equal to the UP that has been eliminated from the group inventory.So therefore we recognise Deffered tax asset> i have done some past exam questions on this and it was right.
Sir it says
Where a foreign operation taxable profit or tax loss is determined in foreign currency changes to the exchange rates give rise to temporary differences.These relate to the foreign entities own assets and liabilities rathe tha the reporting entitiy investment in the operation and so the reporting entity should recognise the resulting defferd tax liability or asset.
it is the first paragraph of pg 166 Section 6.4.I am not able to understand how does trnaslation give defferd tax .Hope now it is clear.
Thankyou
Yes,
There is Temporary Difference of amount equal to UP and a Deffered tax asset wil be recognised.Temporary difference is because different amounts are recognised in the Group statements and the individual statements.
Mike sir please correct me if i am wrong.
Thanks a lot sir,
I know it was a stupid question to ask but there was a question i was going through in my F7 revision kit just for revision purposes of some of the standards and i saw a question which was totally wrong.So i jus wanted to clarify if i was correct. Thanks again sir and sorry for bothering you.
Hi again Sir I did the Question XYZ
What i did was just used the Retained Earnings Opening Figure and worked out through it without opening a seperate accout of reorganisation Ac i found it it much easier because i was gtting confused what to put through Reorg Ac and answer was same as that of the book.I hope i am correct.It is simple double entry principles like if you cancel shares You Dr Shares account and CR retained Earnings Account.Please correct me if i am wrong in my above approach.
Thanks
Sir,
I just got the book i ordered it.I went through the questions and found them much better than i saw in the past exam papers.
I am preparing for current issues question i have got some excellent notes on EDs of revenue leases and prvisions.What would be your advice which ED is more important.I a concentrating on these three.
Best regards
Thankyou very much sir for your help.I think what you have said can be a good base for my answer if it comes in the paper.
Sir,
Is there a way i can those questions.I dont have a BPP revision Kit.I have tried questions which came under the old syllabus but was not able to understand the concept it is all confusing for me.In OT the exmaple given is of groups but in the syllabus it says entity recontructions.
Regards
Hi Sir,
In the Syllabus it says it says just to outline the Treatment and to provide some information on Reconstructions.What will be your advise because i find this topic very Difficult and i am thinking of leaving it.There are some past exam Questions like Dec2002.I am having Difficulties.
Regards
THanks sir i understood the Potential Voting rights concept.I will try to get something on Negative NCi.
Regards
Mr. Mike i recall from my F7 studies that GW is adjusted when conditions come to be known which existed before the Gw measurement and subsequent changes are accounted as per the standard Changes in Accounting estimates.Please can you remember any question which could show me the calculation of this.
