Important questions related to groups

Hello Mike

Hope you are well

i have some important queries which i am including all of them in one thread as it will be time consuming to create separate threads for each.

Q1) i understand that if we have a contingent liability on acquization of subsidiary then we do record this in calculation for goodwill. however how should we deal with a situation where for example the contingent liability amount on the date of acquisition is £1000 but at the end of reporting period increased to 1200? what will be the impact of this transaction and double entry?

Q2) EXAMPLE 4 in open tuition course notes have got dividends but that is proposed dividend which is not paid and hence appearing under current liabilities. however what will be the treatment for NCI if dividends are paid? also for Question 2 single company accounts in F7 exam, how should we treat proposed dividend? i know we deduct paid dividends in statement of changes in equity but what about proposed?

Q3) while acquiring a subsidiary, is it possible we can have a situation where there is a construction contract sitting in the net assets of subsidiary? how should we value that?

Q4) We are normally told in questions about the fair value increase/decrease in PPE of subsidiary and we record these in goodwill calculations plus their depreciations in retained earnings. however what if we have another increase or decrease in subsidiary asset (at the end of reporting period) after we have already recorded it at fair value at acquisition? how shall we account any decrease or increase then?

Q5) How shall we deal with a situation where at acquisition, there is a tax benefit arising from the subsidiaries tax losses that was not recognized by the subsidiary previously?

Q6) If there are any restructuring costs and future losses of subsidiary at acquisition then am i right in saying that we should completely ignore this?

Q7) How shall we calculate present value of deferred consideration if say for example we acquired the sub on 1st march 2010 but we have to pay the sub £200 in June 2010 (which is the reporting date) at 10% cost of capital. how shall we calculate this when we take time thing into account?

thanking you in anticipation