• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Viagem Co

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

  • This topic has 3 replies, 2 voices, and was last updated 7 months ago by f6ali.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 15, 2021 at 6:21 pm #640718
    kinza1997
    • 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
    Moderator
    • 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
    • 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
    Moderator
    • Topics: 10
    • Replies: 342
    • ☆☆☆

    You are welcome.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • jingdong on Pensions (IAS 19) – Introduction – ACCA (SBR) lectures
  • jingdong on Pensions (IAS 19) – Example – ACCA (SBR) lectures
  • Joanne94 on The Management Accountant’s Profit Statement – Marginal Costing – ACCA Management Accounting (MA)
  • mannannagpal on Sources of data – ACCA Management Accounting (MA)
  • mannannagpal on Sources of data – ACCA Management Accounting (MA)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy