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FV adjustment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › FV adjustment

Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
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  • May 6, 2017 at 4:43 pm #385105
    Peter
    Member
    • Topics: 5
    • Replies: 3
    • ☆

    Hi, i have a quick question as it is giving me a headache. When there is FV adjustment in group consolidation question (lets say non depreciable land) one entry is to debit PPE but where does second entry go? Thanks a lot!

    May 9, 2017 at 9:13 pm #385545
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    I wouldn’t focus on the double entry as it is too confusing and not necessary for the exam. If you’re interested then it is effectively reducing the value of the goodwill in comparison to its value without the FV adjustment.

    Thanks

    May 16, 2017 at 3:36 pm #386499
    joeylapiro
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    Hi,

    This also has me slightly confused. Just to confirm, if there is an increase in the non depreciable land at acquisition, should this be included in both the “at acquisition” and “year end” net assets calculations?

    May 17, 2017 at 4:26 pm #386686
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    Yes, unless you have been told otherwise then it will still be there at the reporting date as well as at the acquisition date.

    Thanks

    May 19, 2017 at 11:57 am #387019
    joeylapiro
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    Thank you.

    In terms of the fv adjustment in a group consolidation, why does this movement not go to OCI and what occassions would it.

    Thanks again.

    May 20, 2017 at 4:53 pm #387138
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    Only movement on the OCI itself will go through OCI. So if you are given the OCI at acquisition and at the reporting date in the SFP then the movement goes through group OCI, everything else goes through group retained earnings.

    Thanks

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