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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.
I just constructed the example for better understanding.You may put missing values if required.(Say 25%)
An 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
AYYMThank you AYYM.
So, as I have in previous posts stated, we need to adjust for the group’s share (25%) * pup = 25% * 80
OK?
(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]
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