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The answer posted by examiner for Opening Net Assets @ opening balance was Dinar 64 million which included the FV of building. Why is it so?
Why the NAs @ 1/1/20×6 is not Dinar 48 Million? I assumed this has included the FV of building.In the question that the carrying amount of assets was 48.
It would be the figure in the subsidiaries own balance sheet.
Fair value adjustments are only posted as part of the consolidation process.
So the extra 16 will be needed to take the acid up to fair value.
Hi Sir
I would like to continue this thread as I have query in same question.
Question 1 part a i
examiner wrote that current year Exchange difference will be recorded in OCI and then accumulate in equity. That I understand well.
the point is translation difference for the year is split between parent and NCI each year. Am I right on this point? if I am right then accumulated balance on equity must be share of parent only. Then why in disposal they are recycling only 80 percent of it to profit and loss as this whole relate to parent as we are accounting NCI part with NCI each year. This is evidence from NCI working.
will recognition of exchange gain/ loss during year will be accounted for as follows
exchange gain on goodwill
Dr Goodwill
Cr NCI
Cr OCI with parent shareexchange gain on net assest
Dr net assets
Cr NCI
Cr OCIwaiting for your kind response.
None of the textbooks seem to mention this point but the exchange difference recycled will only be the parent share.
Bear in mind that when this question was set no one got anywhere near this calculation because of the time pressure.
Showing the NCI portion is prizewinner stuff but please make sure you do not run over the time on the question
sir, same doubt. how have they arrived at the value of 64m
48 is the carrying value at 1/1/16
how are we getting the rest 16m?
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