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In the parent co. SOFP there are investments of 45000 ,do we ignore this in consolidation or take it in the CSFP?
cz in the Qs Picant(6/10) the bpp kit ithasnttake the investments?If this investment is investment in the company OUTSIDE the group, you should leave it in the CSFP.
If this investment is investment in company’s subsidiary or associate, you should adjust it in the CSFP.Thanks sir and sangria,actually it is not at all mentoned whether it is in the associate or subsidiary 🙁 what shall i do,i have calculated the adjusted investment in associate ?
You need to work out the investment in the subsidiary and the investment in the associate, to establish what can be cancelled out and what can’t be. The subsidiary investment is cancelled out, but the associate investment isn’t. If you’ve already calculated the adjusted investment in the associate correctly, the answer should become obvious to you when you look at the answer.
To be fair to the tutors, you are asking questions but only giving them half the information they need to answer it.
Woooow! Thanks nps!
Hasan – if you know the cost of the subsidiary in the Parent’s SoFP and you know the cost of the Associate also, add them together, deduct the total from the figure for investments in the Parent and what you’re left with could be the extent of the Parent’s “other” investments – and that figure will not cancel but will be shown in the consolidation
Woooow! Thanks nps!
Hasan – if you know the cost of the subsidiary in the Parent’s SoFP and you know the cost of the Associate also, add them together, deduct the total from the figure for investments in the Parent and what you’re left with could be the extent of the Parent’s “other” investments – and that figure will not cancel but will be shown in the consolidation
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