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acca f7 june 2012 q1
addtional information:
point (i)
square (subsidiary)had an unrecorded deferred tax liability of 1million which was unchanged as at 31 march 2012
how to treat this in csofp?It’s the same as any fair value adjustment made on the occasion of the acquisition of a subsidiary. This time, it’s a fair value adjustment to the value of a non-current liability (it’s more normal in F7 exams for the fair value adjustments to be applied to the values of non-current assets)
This time we have a non-current liability that had a carrying value of $Zero – it hadn’t been recognised by the pre-acquired subsidiary – and is revalued to $1 million
The effect of this is a reduction in the fair value of the subsidiary’s net assets as at the date of acquisition – thus pushing up the value of the goodwill – and the corresponding increase in the consolidated non-current assets
I believe that that answers your question 🙂
ok I got it thanks
I have the another question which is acca december 2012 f7 q1
the additional information
i)
greca had a contingent liability which viagem estimated to have a fair value of 450,000. This had not change as at 30september 2012
how to treat this in accounting treatment in csofp and cis?
thanks so muchNo, sorry. This is unfair on anyone wishing to know about December 2012 question but not wanting to know about June 2012 question
Whenever you have a question / post that is not DIRECTLY relevant to earlier posts, then please start a new thread
So I’m going to ask you to re-post this question about the December 2012 exam
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