• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

P2- Chapter 01, IFRS 3 – Eg: 3 (Viesturs and Baiba)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › P2- Chapter 01, IFRS 3 – Eg: 3 (Viesturs and Baiba)

  • This topic has 5 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 23, 2015 at 5:33 pm #284751
    pbtpriyantha
    Member
    • Topics: 6
    • Replies: 7
    • ☆

    Mr.Mike,

    everything is very clear,but, feel one doubt,
    We measured deferred payment @ PV, according to the IFRS – 3.
    in Eg: 03, Contingent liability (of 2,000,000) is also measured @ PV, whereas, the Standard say to measure contingents @ FV as of the date…

    Pls advice……

    further, Baiba’s profit become 2,200,000… is there necessity of re- assessment and adjustment…

    Thanks in advance

    BR,
    Priyantha

    November 23, 2015 at 5:52 pm #284757
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22699
    • ☆☆☆☆☆

    Is fair value in this context not the same as present value?

    Yes, when the additional 200,000 became apparent, the adjustment is not applied retrospectively. Such an adjustment goes through profit or loss

    November 24, 2015 at 4:55 am #284819
    pbtpriyantha
    Member
    • Topics: 6
    • Replies: 7
    • ☆

    Mr.Mike,

    Thanks for your prompt advice…

    Yes. understood. the fair value is the present value here.

    what about the loan note, If there is a loan notes issue, as a part of the consideration, then also, we need to calculate the present value of them, applying the same practice.

    Pls advice.

    Thanks in advance

    BR,
    Priyantha

    November 24, 2015 at 8:43 am #284852
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22699
    • ☆☆☆☆☆

    We DO include the present value of the loan note issued as part of the consideration by the application of dcf principles

    But this is different than contingent consideration that needs adjustment when the contingency crystallises

    As we unroll the discount for the loan note we are going to arrive back at the full value of the loan repayable – we know this because it was us in charge of the discounting

    In the contingency situation, the outcome of the uncertain matter is entirely out of our hands

    Ok?

    November 24, 2015 at 6:21 pm #284968
    pbtpriyantha
    Member
    • Topics: 6
    • Replies: 7
    • ☆

    Mr.Mike,

    Crystal clear You advice…..Thank you very much…..

    BR,
    Priyantha

    November 24, 2015 at 8:30 pm #284996
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22699
    • ☆☆☆☆☆

    you’re welcome

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • daliuske on Financial management objectives – ACCA Financial Management (FM)
  • ksmigulec on Management of Working Capital  – Introduction – ACCA Financial Management (FM)
  • tmatanga2008@gmail.com on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy