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Income tax = measurement uncertainty – because tax legislation is sometimes unclear and subject to interpretation
Deferred tax = less uncertainty – it’s an objective calculation – but I suppose you could argue that changes in future tax rates make measurement uncertainI would hope that your question is too theoretical for what is now a practical exam 🙂 🙂
Assuming that tax will be payable in the US on the disposal of the asset, you would use the US tax rate.
(Answer, as always, given for exam purposes only 🙂 )
1. Not sure you could ever reconcile it without the detail of the OCI 🙂
2. For what it’s worth, div paid should be 65. Your other numbers look OK.
3. For example that’s more exam style, refer to my spreadsheet exercises in revision section.
Best I can do.
🙂
Very old standard on condolidation, with little that really makes the exam. 🙂
For a good summary, google………………ias plus ias 27………Deloitte do a very good summary, but nothing that isn’t in your course materials.
🙂
https://opentuition.com/acca/sbr/acca-strategic-business-reporting-sbr-revision-kit-live/
Use link above where I talk through 4 years worth of exams. You can then see what you are realistically supposed to write.
You need to know disclosures from the disclosure standards – RPT, operating segments, contingencies, subsequent events
But not necessary to learn detailed disclosures from, say, PPE, Investment Properties, Financial Instruments etc. What you must learn is the accounting treatments.
There are no marks for standard numbers – ever!!!!
Don’t learn them – total waste of time.
Just learn the rules.
🙂
This is an FR topic not SBR.
You may find it useful to go back and re-work the videos on consolidation in FR.
OCE is as much a reserve as RE, so is treated in the same way.
🙂
I think of the consideration as an accounting estimate – we adjust the amount we will be paying as new facts emerge.
Conceptually your argument is interesting – but:
1. Don’t do it in the exam.
2. Don’t bang on about in the exam.Mercifully this is now a practical rather than an academic exam.
🙂
Syllabus requires a knowledge of deficiencies of accounting standards.
If examined, I would expect it to be a small part of a question.
Perhaps learn 2 per standard.
🙂
Perfect for December. Make sure you have a good look at the SUSTAINABILITY STANDARDS.
🙂
Dear Lokesh
We are delighted to hear of your exam success. So pleased that your hard work had paid off. 63% is a great mark.
Wishing you every success with your ongoing career.
OT
Imagine that you own 20% of a house and I won the other 80%. I am the parent and you are the NCI.
Suppose that I buy a further 5% of the house from you.
The change in NCI would be 5/20 of the house (and not 5/20 of the house minus your 20%)
Does that help?
🙂
This is an issue where there is little consistency in theory or in practice. Mercifully, remember that in SBR, your numbers do not need to agree – what they are assessing is whether you can explain things to ‘ordinary directors’.
They will probably give you the NCI number that needs to be compared to the proceeds, so I wouldn’t spend on time on this.
For my rule of thumb – if you go from 70% to 60%, I would take:
– 10/70 x net assets if using proportionate goodwill
– 10/70 (net assets + goodwill ) if using full goodwill.Best I can do.
🙂
1. Open Tuition notes plus videos first.
2. Then use the Test Your Understandings (TYUs) in the Kaplan text.
3. Kaplan text – may be worth reading the waffle topics like Framework and Sustainability. But don’t read the whole thing like a book or you’ll get fed up. As stated earlier, Focus on the TYUs.🙂
Choice for company
– give $1 in cash, or
– give share which it could have sold for $5 to $10Logically it will give $1 in cash
Obligation to pay cash = liability
In the exam, you get the marks for the definitions – if your conclusion is slightly different, not a big issue
Journal – Dr Liability 6 Cr Asset 6
No impact on company cash (it is the pension scheme, not the company, that makes the payment)
1687.5+812.5 = 2500
But I would have just have said 2500 (like you) – keeping it simple
(PS Try not to copy out the whole question 🙂 )
I think it will be obvious in the exam question. If planning to sell on, likely to be FV through OCI.
