Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Unrealised Profit on PLANT- With associate
- This topic has 6 replies, 3 voices, and was last updated 10 years ago by MikeLittle.
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- May 18, 2014 at 1:20 pm #169291
i) Sold by Parent to associate :
At the FIRST day of reporting period, Plant(depreciable asset ) with NBV = $100 disposed by $ 180
remaining useful life at disposal= 10 yearsPlease state the consolidation adjustments for (regarding unrealized profit and the excess depreciation on unrealized profit) -at reporting period.
May 18, 2014 at 9:37 pm #169404What’s the parent’s percentage holding?
May 19, 2014 at 11:58 am #169478I just constructed the example for better understanding.You may put missing values if required.(Say 25%)
May 19, 2014 at 2:50 pm #169496An exposure draft about this is expected in the third quarter of 2014.
So this case is not examinable
Even after 3rd quarter, this will still not apply until it was confirmed
Current issue (just for knowledge is that to mark this URP ,80x% in your case) is that this will be deferred gain.
Regards
AYYMMay 19, 2014 at 3:23 pm #169503Thank you AYYM.
So, as I have in previous posts stated, we need to adjust for the group’s share (25%) * pup = 25% * 80
OK?
May 19, 2014 at 8:11 pm #169551(to be honest, i made this example up so , i could understand that thread too.apologize for being difficult student 🙁 .I assume answer of this will help me get it all)
So i am looking forward for complete adjustment entries for consolidation for p/l and sofp.
[you may add “cost of an associate” or “profit of year of associate ” any values]May 20, 2014 at 6:48 pm #169705Dr Consolidated retained earnings with 20 and Cr Investment in Associate with 20
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