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The DR planned asset 45 CR current liability 45,
Relates to the contribution made by the entity and the question is a consolidation question and asked us to present a consolidated statement of financial position.Regarding the points mentioned, I don’t understand the concept of asset ceiling.
However the answer that I double check a lot of times, shows a define planned asset carrying at 18 and a current liability that increases by 45 at the year end.
Ok sir, I shall quote the entire verse from the BPP kit,
The actuarial value of traverler’s pension plan showed a surplus at 1 dec 20×0 of 72 million. Losses of 25 million on re-measurement of the net defined benefit asset are to be recognized in other comprehensive income in accordance with IAS 19(revised 2011). The aggregate of the current service cost and the net interest amounted to a cost of 55 million for the year. After consulting with the actuaries, and the company decided to reduce its contribution for the year to 45 million. The contributions were paid on 7 nov 20×1. No entries had been made in the financial statements for the above amounts. The present value of available future refunds and reductions in future contribution was 18 million. Unquote.
End of reporting period is on 30 nov 20×1
The version I am using is BPP revision kit for exams up to June 2015, question 44, traveler.
It is the sixth entry in the question.Information is too vague to make a calculation. Eg. If subsidiary have 10000 shares and our share price at fair value is $2. Therefore 75% of 10000 shares=7500 shares. So for every five shares of 7500, we will issue two of our shares. 7500/5=1500 shares. So parent company have to issue out 1500*2=3000 shares at $2 per share which is 3000*2=$6000. Next we deal with the loan notes, we look at the number of shares we brought which is 7500. For every 1000 shares, the parent company will issue loan note of $100. 7500/1000=7.5, 7.5*100=750. Total consideration is $6000+$750=$6750. This is based on my subjective understanding, i advise you just take it for reference purposes and develop your own understanding.
This is a illustration of the matching principle. At 1st of Jan, balance b/f is 290000, next project C cost to 30th June is 19800. U need to capitalize the 19800 thus it should be 290000+19800=309800. Than it is mention that on 1st of sept, production and sales commence and expected to last for 36 month. So we must divide the capitalize amount by 36 months which is 309800/36=8605.56. So expense for the year is from 1st sept to 31st dec 8605.56*3=25816.67. Based on the information available, this should be the solution. Please correct me if any seniors find my solution wrong.
Go to acca website and take a look at the syllabus and take a look at Kaplan’s book. Compare and contrast.
Hey sir I worked through an example and used your double entry as reference. I perfectly understand it now. Thanks sir.
Thanks sir. One more question, for positive goodwill, we will include it in the NCA. What happens for negative goodwill? Where do we account for it in the consolidated SOFP?