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Hi,
Please guide me on the following:
i) While a write-down to NRV is treated as an expense in SOPL, would a reversal of the write-down be treated as income?
ii) In consolidation questions, what portion of the revaluation surplus would the NCI take on the SOFP? Only the subsidiary’s or both the parent+subsidiary? Also, do we only take the NCI% of the year-end balance or the just the post-acquisition movement?
iii) And finally, are we permitted to use abbreviations such as SOPL, SOFP, OCI & NCI in the exams?
Thank you for this website!
Warm regardsHi,
i) We wouldn’t reverse the write-down. We may subsequently sell it for more, but that is then accounted for as revenue.
ii) We take the NCI% of the post acquisition movement of the revaluation surplus/other components of equity.
iii) There are no presentation marks in the exam so you couldn’t be penalised.
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