Forum Replies Created
- Posts
1. You add P plus S for OCI. The NCI proportion of the rev’n gain is then shown separately (in the split of TCI).
2. Any goodwill and therefore any impairment would relate to the subsidiary. The associate would be recognised using equity accounting.
🙂
Gain on ‘disposal’.
Dr Inv 1.6 Cr P&L or OCI (if irrevocable election) 1.6
Then consolidate.
After IFRS 5 classification, use current asset rules………………………so loss goes to P&L.
EPS is examined in FR much more than SBR.
You only take account of post-year end issues if they are bonus or rights issues.
If company has 10 shares in issue for the whole year, but makes a 1 for 2 bonus issue after the year end , the denominator in the calculation would be 15.
BUT
If company has 10 shares in issue for the whole year, but makes a 1 for 2 issue AT FULL MARKET PRICE after the year end , the denominator in the calculation would be 10.
🙂
1. If you are sponsored, check with your employer.
2. If you are in practice, check the ACCA advice:
3. Otherwise do INT. There is less to learn.
🙂
100% relevant for March 25 and June 25.
Lectures for Sept 25 onwards will be released in June, but it would only take you an extra day to learn the new bits of the syllabus.
I take your point. :).
The learning point is that the PPE is not derecognised. But I need to change the wording in the question slightly. I’ll do it when the lecture is next re-recorded.
Thank you for feeding this back.
Unrealsed profits are more likely to be tested in FR, but only for a mark or so. It’s not a major SBR issue.
I recommend you watch the FR lectures on groups again.
Golden rule = adjust in books of ‘seller’.
Strictly speaking, there will be a FX reserve, which would be used.
On the next update, I think I will change the requirement from ‘retained earnings’ to ‘reserves’
Thanks for pointing this out.
🙂
Your argument is very well put – you almost convinced me about the asset!
But, as you say, in reality, the money is given to a financial institution (e.g. Aviva) – it is an additional expense of employing the staff.
Interestingly, even DB plans were not on the balance sheet 30 years ago.
🙂
(Don’t forget that, in the exam, explanations are more important than numbers).
How to approach:
1. Cash settled element – Dr P&L Cr Liability
– normal calculation, based on FV of instrument at SFP date.2. Equity settled element – Dr P&L Cr Equity
– based on formula – A minus B
– A = Number of instruments if equity settled x FV of SHARE BASED ROUTE at grant date
– B = Number of instruments if cash settled x FV of instrrument at grant dateIf you are interested, detail in Chapter 8 of:
https://assets.kpmg.com/content/dam/kpmgsites/xx/pdf/ifrg/2024/isg-handbook-share-based-payments.pdf
No. Imagine that I make sausages.
My salary cost should reflect cost of making sausages not cost of buying other companies.
(Answer given for exam purposes only).
I think, as you say:
Dr Liability
Cr Salary expense(All answers given for exam purposes only 🙂 )
If the company sells 100 goods and (based on estimates) there’s a 30% chance of returns:
Dr Cash 100
Cr Revenue 70
Cr Contract liability 30The goods likely to be returned remain in inventory
1. Assuming they can take some revenue (as they have) in x8, and that’s only appropriate if there’s been a transfer of control. 🙂
2. Then, the change in contractual terms is a non-adjusting event. (I agree with that).
3. So the extra revenue will be takem in the x9 year, not the x8.
Hope trhis helps
🙂
Consideration type = cash
Variable = no
Record = on despatch (less expected returns)
Mismatch = don’t understand your questionNo revenue at all can be recognised unless there is a change in control (or some other criterial in IFRS 15 are satisfied).
What justification do they give for recognising any revenue? Let me know.
ACCA website = examinable documents
iasplus website has very useful summary of each standard
🙂
