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What do u mean by *Gold carried out an impairment review of the goodwill arising on acquisition of Silver and found that as at 30 June 2002, goodwill was not impaired.
Question-2
What do u mean by payments made during the year..
30 june 2001 for three months to 30April 2001.
If u make payments on 30 June to three months it should be september ryt?Question-3
Spyder purchased 480 million shared in Phly some years ago..
So is the value for share capital of Phly at the acquisition date?Question 1: Impairment is like depreciation. Since it is not impaired it is irrelevant.
Question 2:
No not right. If it says that on 30 June you paid for 3 months to 30 April, then you paid for 3 months to 30 April!!!!
(Suppose it was electricity – they sent the bill after you have used it)
You should watch the free lectures on accruals and prepayments.
Question 3
I am sorry, but your question does not make sense.
What value are you talking about? The nominal value or the amount they paid?
Question 4
We debit for an expense (which reduces profit) and credit for income (which increases profit).
However you do not say where we are debiting or crediting.
No I found that a debit entry increases profit in the MS
but it usually should be a credit entry ryt?
they have just stated credit entry increases profit.. is that correct?In question 4, Im asking u whther 400 million is the amount to be entered in acquisition of Phly?
“they have just stated credit entry increases profit” – it depends on a credit entry in which account.
I have already written that we credit for income, which increases profit. I don’t know why you are asking again. Maybe I am missing something in your question.I really cannot answer about the 480M (or the 400M). It depends which part of the workings you are doing (I assume that you are asking about consolidations). It depends on the nominal value per share. It depends on how much they paid for the shares.
Have you watched the lectures on consolidations?
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