• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

business combination

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › business combination

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 20, 2021 at 8:26 am #618275
    Justie
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    an employee filed a claim against TT on 12 march 2009 for R250000 for injuries sustained whilst on duty. the injuries were sustained on 24 February 2009. the lawyers of TT are of the opinion that the employee is entitled to compensation, but that the compensation must be claimed from the compensation fund ( in terms of the compensation for occupational injuries and diseases act ) and not from TT. the compensation fund is administered by the department of labour.

    the shareholder of TT agree with this opinion but have guaranteed that, should TT become liable for this claim in the future, they will reimburse TT for 75% of the actual payment. the fair value of TT’s potential liability to the employee is R180000 on 1 March 2009. any amount that TT may be required to pay would not be tax deductible.

    on 28 February 2010, the claim was submitted to the compensation fund. the fair value of the potential liability was R80000 on that date. the compensation fund settled the claim of the employee in full on 14 December 2010. acquisition date is 1 March 2009. prepare a pro forma journal entry

    April 20, 2021 at 4:16 pm #618310
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    What you have asked is not examinable in Paper FA (and I do not know why you have headed up your post as “Business Combination” 🙂 )

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • verweijlisa on Financial performance – Example 2 – ACCA Financial Reporting (FR)
  • John Moffat on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Salexy on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • omerbasheer on The Statement of Financial Position and Income Statement (part d)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in