Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Changes in the Group Structure
- This topic has 5 replies, 2 voices, and was last updated 2 years ago by Stephen Widberg.
- September 4, 2020 at 6:07 pm #583492
I need to ask two questions:
1 – In step acquisitions, when the entity acquires further shares and gains control, then the previously held investment is measured at fair value and any resulting gain or loss is recorded in P&L, if the previous investment was measured at FVTOCI then the subsequent gain or loss is recorded in P&L or OCI?
2 – Do complex groups structure exist in real life??
ThanksSeptember 5, 2020 at 4:24 pm #583587
1. FVPL – gain to P&L
FVOCI – gain to OCI
2. YesSeptember 5, 2020 at 5:21 pm #583597
If complex groups exist in real life then we should ideally be learning the complex group accounting from practical point of view. What do you think?September 6, 2020 at 2:39 pm #583684
I am not sure what you mean by complex groups. If you mean vertical groups which are not in the syllabus there is no point in examining them because the adjustments are too easy. At this level they are trying to assess you on your ability to explain your knowledge of standards. Learning the two adjustments for complex groups could only be worth two marks in the exam question so it’s not worth testing.September 6, 2020 at 6:53 pm #583715
OK Thanks!September 7, 2020 at 10:10 am #583756
Pleased to help
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