• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Dec 2012 question 1) on Viagem

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Dec 2012 question 1) on Viagem

  • This topic has 7 replies, 3 voices, and was last updated 8 years ago by MikeLittle.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • May 25, 2016 at 9:05 am #316973
    Anuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    For transaction (iv) regarding the associate, to calculate the profit on the investment in associate how come the the impairment is not deducted.

    They only took (2000 x 40% ) = 800. Why ?

    May 25, 2016 at 9:20 am #316978
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    Are we talking here about the impairment in the subsidiary – “Although Greca has been profitable since its acquisition by Viagem, the market for Greca’s products has been badly hit in recent months and Viagem has calculated that the goodwill has been impaired by $2 million as at 30 September 2012.”

    And you want to deduct the goodwill impairment related to the subsidiary from the profits of the associate – “Viagem’s investment income is a dividend received from its investment in a 40% owned associate which it has held for several years. The underlying earnings for the associate for the year ended 30 September 2012 were $2 million.”

    Are you sure that this is a sensible way to approach the issue of calculating the profit share of the associate?

    May 25, 2016 at 11:19 am #317017
    Anuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    Okay. I get it now.

    May 25, 2016 at 12:25 pm #317039
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    It looked for a moment as though the NCI were going to get it too!

    May 30, 2017 at 7:57 am #388915
    kulwants
    Member
    • Topics: 0
    • Replies: 4
    • ☆

    Hi Mike, what happened to the investment income that appeared in the pl in the question with Viagem of $500,000 ?

    I can’t see it in the answer anywhere.. can you please explain..

    May 30, 2017 at 12:11 pm #388991
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    Is it intra-group investment income?

    May 30, 2017 at 12:58 pm #389004
    kulwants
    Member
    • Topics: 0
    • Replies: 4
    • ☆

    It’s mentioned in the “statement of profit and loss for the year ended 30 September 2012” in the question. It’s difficult to comment what type of investment income it is as it’s not part of adjustments (relevant information to the question). See question, you would understand.

    Investment income Viagem -500 and greca -nil.

    My question is why is not not included in the consolidated statement of profit and loss for viagem for the year ended.

    Thanks

    May 30, 2017 at 2:14 pm #389015
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    “It’s difficult to comment what type of investment income it is as it’s not part of adjustments (relevant information to the question)”

    Is it not point (iv) reproduced here:

    “(iv) Viagem’s investment income is a dividend received from its investment in a 40% owned associate which it has held for several years. The underlying earnings for the associate for the year ended 30 September 2012 were $2 million.”

    or is it me being stupid?

  • Author
    Posts
Viewing 8 posts - 1 through 8 (of 8 total)
  • The topic ‘Dec 2012 question 1) on Viagem’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mrjonbain on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • OmarAlbeity on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Salimbek909 on The nature and structure of organisations – ACCA Paper BT

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in