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CFS is a LIST of cash flows. The line ‘net assets’ does not exist in CFS. All that we have is MONEY OUT when we pay the vendor of the subsidiary and MONEY IN if the subsidiary brings a cash balance in.
Please watch our CFS lectures where this is fully explained:
https://opentuition.com/acca/sbr/group-scf-acquisition-disposal-of-subsidiary-acca-sbr-lectures/
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I don’t keep Kaplan materials. Please summarise the problem so that I and other students understand the problem. Also, use the topic (eg control) not the question name as the header.
BTW – it is CONTROL not ownership of shares that determine subsidiary or associate status. If you only have significant influence, it’s an associate.
Dr = assets held by pension plan – because companay has made contrbutions
Cr = liabilities to beneficiariesPlease watch my lecture again as this explains the issue more fully
Settlement of 60 = amount paid to beneficiaries in return for surrender of benefits – this will DECREASE the pension ASSETS
Value of contribution of 50= I’m not sure of your context, but I supect this implies reduction in amount I must pay to beneficiaries – this will decrease pension LIABILITIES
As you say, reduction in assets is greater than reduction in liabilities. Therefore a loss of 10.Hope this helps.
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If you mean SBR:
1. Use our free study materials OR buy an updated BPP workbook – either option is fine.
2. Get a new BPP revision kit. DO NOT USE AN OUT OF DATE KIT.If you are taking the exam in September, make sure you get the 26/27 BPP exam kit – the current one expires after the June sitting.
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If you borrow to build an asset and don’t use the loan, does the lender not object? 🙂
But I would say P&L.
ALL ANSWERS FOR EXAM PURPOSES ONLY
1. We only answer questions for exam purposes. You need to take professional advice if you are asking about a situation at work.
2. For exam purposes =if material error – therefore prior period adjustment,
2. IAS 8 no longer examinable – it’s much safer not to use standard numbers in the exam.OK. Two weeks on FR, six weeks prep for SBR plus 2 weeks revision.
But start today!
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In the BPP answer the 2 goodwill figures are 400 and 240 and the impairments are 40 and 24 (both 10% as stated in the question). In part 1 the loss must be shared with the NCI because we are valuing NCI at fair value. In part 2, no goodwill is attributable to the NCI , so no loss will be chaged. (If in doubt, look back at our groups lectures).
i’m guessimh that you’ve already done FR.
If your FR is strong, you probably need about 3 months – 6 weeks to work through our lectures and then 4 weeks on past questions using your BPP revision kit.
Follow the lectures and you will be fine.
About 10 hours per week.
Your understanding is perfect.
For PPE to IP – I would say gain to OCI / RR not “OCI in RR”, as OCI and RR are 2 different things.
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Follow the guidance in your BPP revision kit. One mark per decent sentence. Remember that your answer will be a lot shorter than the examiner’s. 🙂
Company has a policy of revaluation.
IFRS 5 requires that, if the policy is revaluation, you must:
1. Revalue to FV at date of classification as HFS.
2. Compare FV with FV less costs to sell – resultant loss to P&LImpact is that selling costs will go to P&L.
Very irritating rule but we are stuck with it.
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100% no.
Don’t use any P2 materials at all. Why?
1. Exam is now about explanations rather than calculations.
2. Accounting standards have changed.
3. Style of consolidation question has changed.Only use BPP or similar revision kit valid for current sitting.
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Financial assets – Dr FA Cr Cash
Financial liability – Dr FL Cr CashException if FA or FL is measured at fair value with gains/losses in P&L, then:
Dr P&L Cr CashAll I can say is ….. if you plan to do AAA ….. do it next…… but be aware it’s harder than SBR so will need a lot of time.
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If you mean – comment on the weaknesses of standards – not the most important thing in the world. Nothing outside the study materials. Exam is more practical than theoretical.