- November 16, 2016 at 5:14 am #349187
In this question the new % (80:20) of Parent and NCI holding has been used in allocating the impairment of Data.
Is it wrong if we use the old % of (60:40)November 16, 2016 at 10:15 pm #349402
Yes it is wrong to do so. The impairment is done at the reporting date, which needs to reflect the reporting date holding.
ThanksNovember 17, 2016 at 10:34 am #349541
so will the post acquisition RE and OCE, excess depreciation and amortisation and URP in inventory be all apportioned in the new percentage?November 18, 2016 at 11:17 pm #349892
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?November 19, 2016 at 6:08 am #349935
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?November 22, 2016 at 9:28 pm #350785
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.November 23, 2016 at 2:52 am #350828
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%????November 24, 2016 at 9:36 pm #351281
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.November 25, 2016 at 2:52 pm #351448
Then only impairment will be apportioned using the new % other than that everything would be with old % according to this question stated above?????November 27, 2016 at 9:38 pm #352003
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.November 28, 2016 at 10:04 am #352115
thank you 🙂
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