- November 27, 2022 at 6:48 pm #672769ninadjurovic1996Participant
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I would like to ask two questions about the C section in the pre-December FR mock exam (question number 31).
1) Why we do not need to increase consolidated retained earnings by 75% of 2,100,000?
“The policy of the Dorrit Co group is to revalue all properties to fair value at each year end. On 31 December 20X8, the increase in Dorrit Co’s property has already been recorded, however, a further increase of $2,100,000 in the value of Twist Co’s property from the acquisition date to 31 December 20X8 has not been recorded”
2) When we need to divide the profit for the year and total comprehensive income attributable to owners of the parent and NCI, why we do not decrease profit and total comprehensive income attributable to NCI for the impairment of 450,000 (1,800,000 *25%) which is included in the NCI calculation?
Thank you in advance,
NinaDecember 3, 2022 at 1:16 pm #673220P2-D2Keymaster
- Topics: 4
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1) Is the increase not recorded in OCI instead? there should be an adjustment for the increase in the net assets working as well as the PPE figure on the face of the group SFP. The change in value will then filter down to the other workings, or at least it should do.
2) How is the NCI valued? We only give the NCI their share when it is under the fair value model.
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