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Dear Sir
I apologise if the answer is obvious but I just do not seem to be able to get my head around this!Q4, Viktorija
Could you tell me how the PUP is calculated ? I can’t get the 2.7 per answer page?Q5, Didzis
Could you tell me why are we using the g/w impaired b/f in W3a rather than g/w impaired this year?Many thanks in anticipation.
PUP in chapter 10 example 4 Viktorija:
“During the year, Natalija had sold goods to Viktorija with a transfer value of $30,000 realising a gross profit of 27%. Viktorija thirds of these goods by the year end”
Gross profit percentage of 27% on $30,000 sales = $8,100 profit
There are still one third of these goods in inventory as at the year end so pup is 1/3 x $8,100 = $2,700
What’s the goodwill impairment figure for this year? $9,125?
What figure for goodwill impairment appears in the cost of sales calculation? $9,125?
W3 (both (a) and (b)) are workings for the statement of financial position. They are shown in Didzis / Ansis answer merely to show that the two primary statements are closely linked
Specifically to answer your question, working W3A is the working for the brought forward figure for consolidated retained earnings so we need to deduct the brought forward cumulative goodwill impairment (ie 75%) from the brought forward cumulative retained earnings
Working W3B is the working for the carried forward figure for consolidated retained earnings so we need to deduct the carried forward cumulative goodwill impairment (ie 100%) from the carried forward cumulative retained earnings
OK?
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