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Viagem Co

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Viagem Co

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by f6ali.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 15, 2021 at 6:21 pm #640718
    kinza1997
    Participant
    • Topics: 16
    • Replies: 18
    • ☆

    hi
    for impairment of goodwill, why is it not being recorded in goodwill calculation?

    also, why investment income is being omitted when it is present in the proforma of sopl of group.

    please help

    November 16, 2021 at 4:10 pm #640808
    f6ali
    Member
    • Topics: 10
    • Replies: 342
    • ☆☆☆

    Hi.

    1) Part (a) of the question requires calculation of goodwill at 1 Jan 20X2 (acquisition). The impairment occurred on the reporting date of 30 Sep 20X2 (9 months after acquisition). The calculation provided in the answer is upto the acquisition date only. If goodwill balance at the reporting date was required, impairment would be included.

    2) There is no omission. It is part of the ‘income from associate’ figure in CSOPL. The original figure of $500k is the amount received as a dividend to Viagem.

    When we’re preparing group accounts, any associate is accounted for using equity accounting rules under IAS 28, which requires that the group’s right to earnin.gs of associate for the corresponding period must be included in CSOPL.

    The group has a right over 40% of associate’s earnings, regardless of how much of it is received as dividends. Therefore the figure of $800k ($2m*40%) is included in CSOPL.

    Hope this helps.

    November 16, 2021 at 7:44 pm #640829
    kinza1997
    Participant
    • Topics: 16
    • Replies: 18
    • ☆

    Hi
    Thank you for the reply…
    Now, it’s clearer to me…

    November 18, 2021 at 1:58 pm #640976
    f6ali
    Member
    • Topics: 10
    • Replies: 342
    • ☆☆☆

    You are welcome.

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