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Special purpose entity

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Special purpose entity

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by Stephen Widberg.
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    Posts
  • August 31, 2022 at 2:52 am #664717
    poqipi11
    Participant
    • Topics: 18
    • Replies: 9
    • ☆

    In Guidance co (sep/dec 19), we have transferred the asset, I’m confused regarding the treatment of it, what would be the original correct entry for the transfer of asset? if investment in spe to the carrying value of asset is the correct one then why have we added back the asset in the adjusted total assets? is it because we are approaching the question as a group now? because from the perspective of the individual book the asset has been genuinely transferred.

    September 1, 2022 at 4:47 pm #664871
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3404
    • ☆☆☆☆☆

    I feel your pain. It’s hard to work out the specific adjustments. I suspect that the marks were given for approach rather than agreeing with the answer.

    Parent; DR INVESTMENT IN SPE CR PPE
    SPE: DR PPE CR SC
    Group: PPE is in group SFP

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