- May 16, 2016 at 7:07 am #315256PuneshMember
- Topics: 7
- Replies: 7
I have question which I am not able to get my head around it. This is a question from BPP
P Co owns 60% of S Co and 1 Jan 20X1 S sells asset costing $10,000 to P for $12,500. The co.s make accounts on 31 Dec20X1 and the balance of the Retained Earnings at the date are
P Co. after charging Depn for !0% on asset $27000
S Co including Profit for Sale of asset $18000
Show working for Consolidate Earning
Please can you help me on this.
PuneshMay 21, 2016 at 11:54 am #316184MikeLittleKeymaster
- Topics: 26
- Replies: 22699
2 things Punesh
1 – I very rarely look at the F7 general forum and yet you’ve addressed this to me! If you want to guarantee that I shall see and respond to you, you must post on the Ask ACCA Tutor forum
2 – Have you followed the curse notes and watched the video lecture on how to deal with intra-group transactions?
Please do so and then come back to me on Ask ACCA Tutor for F7 and I’ll clear up any confusion that may remainJune 6, 2016 at 1:53 pm #319864taylor79Member
- Topics: 1
- Replies: 1
Silly question…. In the context of inter-entity trading what is the meaning of the abbreviation “PUP”June 6, 2016 at 5:35 pm #319940ChristaMember
- Topics: 7
- Replies: 108
I need some assistance with the following:-
Sale and Lease Back Finance Lease
In the event that there was a loss on disposal and not a profit and the lease term is years.. would the whole loss be recognised on the statement of Profit and loss or would be “deferred” If so what would it look like in the Statement of Financial Position?
For loans which are given to the subsidiary:-
1) In the statement of profit and loss is an adjustment required to remove this interest (finance) since it intra-group?
2) When calculating a time apportioned finance cost.. should an adjustment be made to the finance cost before it is time apportioned? Lets say it was 100 in interest expense and 400 is in the SOPL. And the parent owned the subsidiary for 6 months
Is it (400 -100)*(6/12)???
3) Would the converse occur if the loan was made from the subsidiary to the parent?
The investment income will be prorated when calculating next assets… taking out the investment income then pro-rating ??
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