Dec 2011 Q1 Traveler (impairment allocation)

Hi, Yes it is wrong to do so. The impairment is done at the reporting date, which needs to reflect the reporting date holding. Thanks

so will the post acquisition RE and OCE, excess depreciation and amortisation and URP in inventory be all apportioned in the new percentage?

Post acquisition earnings and OCE will be based on the old percentages up until the date of change in ownership as that is what we owned as the subsidiary made the post-acquisition profits. Why would be apportioning the other items you mention?

What i mean is if further acquisition happens at the last day of the reporting date, how will post acqusition RE and OCI be treated?

You will need to split the post acquisition RE and OCI further, so following the initial acquisition and then the next change in ownership date.

what i actually means is the post acquisition RE and OCE will be apportioned in the old % cause they were earned during the period.like you said As you said above impairment is carried out at the end of the period so it will be apportioned according to the new% I understood the above the amortisation and depreciation and URP in inventory too would be charged to SFP at the year end right like the impairment??? so what i want to know is: would they too be apportioned by the new%????

Why would you apportion the depreciation etc.? If we have control for the full year then we include them for the full year. IF we don't have control then we pro-rate.

Then only impairment will be apportioned using the new % other than that everything would be with old % according to this question stated above?????

Items are apportioned in relation to the holding on the date the transaction took place. If the impairment takes place when the new holding was effective then we use that holding.

thank you :)