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Hi ALL,
Have you reviewed this test yet, if yes, pls. let me know why the answer ignore the income credit $60K at the acquisition date and $5K of goodwill impairment ??
Thanks
I would like to help u. but be specific, which test u r talking about.
chpter 3 is CIS.
are u talking abt test ur undersatnding question?or fixed test 3 at the end of the book?
Thanks Vipin, I’d like to ask about test of understanding 3 of Kaplan book in Chapter Consolidated of Income Statement, pls. help me on this issue
5k is of fair value adj, that is adjusted in asset, which is listed in SFP not in IS. depreciation of fair value adj is added to cost of sales.
Hi dragon
I’ve got the Kaplan text in front of me, opened at page 84 on Test Your Understanding 3, Pepper and Salt. However, I cannot see neither a) where is the 60k income credit to which you refer, nor b) where in the question is the 5k goodwill impairment which you mention
So, until you let me know which question you refer to, I can’t help.
Sorry 🙁
mikeLittle,
I ‘, asking about Test 3 between Flowers and Smith in Chapter 6 Consolidated Income Statement of Kaplan, the model answer ignore the Credit Income $60K at acquisition date, pls. let me know why ?
ok, Dragon, I have the Kaplan text in front of me – chapter 6 is “Introduction to published accounts”
You’re going to have to tell me which material you’re looking at – study text, revision kit, course notes?
If I can’t find the question, I can’t help you 🙁
It’s study text. pls. find it out, I got it in study book of Kaplan published 2008, every year they changes the structure of book content, pls. look it up in Chapter of IS Consolidated
Ah! In the 2012 study text, this is Test Your Understanding 1 …. and, it’s obviously changed quite dramatically since 2008.
#1) there is no mention of $60,000 anywhere in the question, and
#2) the $5,000 goodwill impairment is not ignore, it is shown within the Consolidaed Income Statement within Operating Expenses as directed by the question
The moral? Stop using material which is 4 yours out of date!
60K is income of Subsidiary Company at acquisition date,Thank for your reply, But it ‘s the best book of F7 I’ve had to learning, I think It’s still Ok for Exam 🙂
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