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Hello sir, when we transfer an asset, we would recognise the gain or loss to the extent unrelated investor interest. What would be the double entry for this :
Bth investor A and B hold 50% on JV
Investor A transfer asset with carrying amount of $9 million for $10 millionCR PROPERTY 9 MILLION
DR CASH 10 MILLION
CR GAIN ON DISPOSAL 0.5 MILLION
CR ??? 0.5 MILLIOMInvestor A
If you give it to the JV:
Dr Investment in JV 9.5
Cr PPE 9
Cr P&L 0..5Are you asking me what would happen if we ‘sold it’? I suppose it might be:
Dr Cash 10
Cr PPE 9
Cr P&L 0.5
Cr Inv in JV 0.5But it’s a bit of an obscure question! PUPs are really more FR than SBR.
Best I can do. 🙂
Hello Mr Stephen Widberg,
you said and i quote above* But it’s a bit of an obscure question! PUPs are really more FR than SBR.*
What would you say are more SBR style areas to look at with less then a week left –> selective focus is important
P.s a cheeky question do you think SCF will come up for groups haha 🙂
section E and F articles
The big message is that the exam is about words and not numbers.
I have no idea which exam you will get – it may be different to the person sat next to you – but please revise cash flows.
🙂
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