December 2009 Question 1 Pandar

Registration costs very little, so I believe. The fact that it becomes popular is as a result of the domain name holder's efforts and such internally generated assets are not recognised. In the same way that internally generated goodwill is not recognised. It WILL be recognised when it's sold! And when it's bought. But until then, no.

Thanks a lot for your help, but in December 2011 Question 1 Paladin, the saracen's customer relationship had been treated as intangible assets and did an amortization, i think it is generated by Saracen itself and it is also an internally generated assets, i am very confused please help me. many thanks jingdongyu

Dear Mike, In question Panda, when calculating NCI : (21000+2000)/2-2000=9500, i don't understand why it needs to be deducted by 2000, i think this is an intragroup interest needed to be canceled, why it had been recorded in the profit and loss account of Salva? many thanks jingdongyu

Saracen's customer relations internally generated asset was a fair value adjustment wasn't it? Like goodwill, it's not recognised until it's bought (or sold)

In F7 questions, you'll often see a note from the examiner "all incomes and expenses are deemed to accrue evenly unless otherwise indicated" In this case, the 2,000 loan interest that has been deducted in arriving at the year's profits relates only to the post acquisition period (because the loan was only created as at date of acquisition) So add back the $2,000 to find the profit for the year BEFORE loan interest Divide by 2 to get $11,500 pre-acquisition profits and $11,500 post acquisition profits And now deduct the $2,000 to find that, of the $21,000 profit for the year, $11,500 was pre-acquisition and $9,500 was post acquisition Better?

thank you for your explanation, $9,500 was post acquisition, but 2000 is intragroup interest, should be excluded, sorry i am still confused. many thanks

Yes, $2,000 finance charges in the subsidiary will not be carried through into the consolidated statement of profit or loss and nor, incidentally, will the $2,000 investment income in the parent's records