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Retaining Earnings

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Retaining Earnings

Viewing 4 posts - 1 through 4 (of 4 total)
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  • June 3, 2021 at 4:30 pm #622974
    suleymanabuzerli
    Member
    • Topics: 84
    • Replies: 32
    • ☆☆

    why are issue costs of loan note added(as plus) to retainins earnings?

    June 3, 2021 at 9:50 pm #623011
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    I think that you are referring to a question where initially the issue costs have been incorrectly expensed through profit or loss when they should have been deducted from the loan note issued.

    To correct the error we remove the expense from profit or loss/retained earnings by adding it back and then deducting it correctly from the value of the loan notes.

    Thanks

    June 26, 2021 at 11:58 am #626382
    adikah
    Participant
    • Topics: 0
    • Replies: 1
    • ☆

    Please I want a clarification on this : policies are to make a full provision for unrealised inter-company profits, and to treat
    goodwill in accordance with IFRS

    June 30, 2021 at 7:22 pm #626727
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    We eliminate the unrealised profit on the goods still held within the group at the reporting date. so, if we have sold 75% and therefore 25% are still held then we eliminate 25% of the PURP.

    Yes, we treat goodwill in accordance with IFRS, specifically IFRS 3.

    Thanks

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