IFRS 10 Consolidated Financial Statements states
Q: 3. The following stateme il, except. An entity shall prepare all its financial statements using the…
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A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: , IFRS Financial Instruments One of the following is not within the scope of the standard
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A: Government is a regulatory body and doesn't fix the price of the security. Option a. is incorrect.…
Q: Which of the following is correct regarding the classification of investment in debt instruments as…
A: Which of the following is correct regarding the classification of investment in debt instruments as…
Q: All of the following are true of the effect of fair value accounting on the financial statements…
A: Fair value accounting: uses the Current Market Values as the basis for Recognizing Assets &…
Q: Which of the following is correct regarding the classification of investment in debt instruments as…
A: The FVTOCI classification is mandatory for certain debt instrument assets unless the option to FVTPL…
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A: Controlling financial interest is nothing but to exercise control over another financial entity by…
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A: Under IFRS 10 ,Control exists when the investor has power, exposure to variable returns and the…
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A: Protective rights refers to the rights which are designed to protect the parties interest that holds…
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A: There are various laws governing securities
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Q: what are some fundamental challenges in accounting and reporting for a noncontrolling interest?
A: In deliberations prior to issuance of SFAS 160 "Non controlling interest in consolidated financial…
Q: . Which of the following statements is true? a. The fair value option requires that some types of…
A: The fair value option allows, but does not require, that some types of financial instruments be…
Q: Which of the following is correct regarding the classification of investment in debt instruments as…
A: Option (c) is correct answer.
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A: The question is related to the IFRS 9 Financial Instruments.
Q: PFRS 9 permits an entityto make an irrevocable election to present in other comprehensive income…
A: Solution: According to PFRS 9, "An entity may make an irrevocable election to present in other…
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A: In layman’s words, financial management is the management of the finance or funds in an…
Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: Solution: As per PFRS, Amounts presented in other comprehensive income shall not be subsequently…
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A: Option (b) is correct. Explanation is given in next step.
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A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…
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A: IAS 1 SETS OUT OVERALL REQUIREMENTS FOR THE PRESENTATION OF FINANCIAL STATEMENTS , GUIDELINES FOR…
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A: The entity theory is an accounting and legal doctrine that distinguishes businesses from their…
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A: As per IFRS 9, Financial instruments, The unrealized gain on changes in fair value of the financial…
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A: Secondary market transfers liquidity to the primary market.
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A: IFRS for SMEs states the self contained global accounting as well as financial reporting standards…
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“IFRS 10 Consolidated Financial Statements states that there are few ways to ascertain if the investor ‘controls’ and ‘influences’ its investees.”
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- Sailor Berhad acquired all the shares in Mon Berhad on 31 December 2022 for a cost of RM900,000. The statement of financial poistion of both companies for the year ended 31 December 20221 were as follows: Non-current assets Investment in Mon Berhad at cost Current assets Ordinary share Retained earnings Current liabilities Sailor Berhad RM'000 1,600 900 380 2,880 1,000 1,580 300 2,880 Mon Berhad RM'000 750 300 1,050 500 300 250 1,050 Required: Explain by way of calculation on how to prepare the consolidated statement of financial position for the group as at 31 December 2022.On 1/1/2019, P Co acquired 75% of S Co's outstanding common stock for cash. The fair value of the noncontrolling interest was equal to a proportionate Share of the book value of S Co net assets, at the acquisition date the balance sheet data are as follows:- S total assets 108,000 liabilities 36,000 common stock 30,000 retained earning 42,000 Select one: O P a. 45,000 b. 18,000 c. 9,000 d. 27,000 504,000 144,000 Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in the 1/1/2019 consolidated balance sheet? 120,000 240,000The Ludel Company acquired the net assets of the Girl Conrad Company on January 1, 2018, and made the following entry to record the purchases:Current assets P100,000Equipment 150,000Land 50,000Buildings 300,000Goodwill 100,000Liabilities 80,000Common stock, P1 par 100,000Paid-in capital in excess of par 520,0001. Assuming that additional shares on January 1, 2020 would be issued on that date to compensate for any fall in the value of Ludel common stock below P16 per share. The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1, 2020. The fair price of the shares on January 1, 2020 was P10.What is the additional number of shares issued on January 1, 2020 to compensate for any fall in the value of the stock? a. 60,000b. 100,000c. 10,000d. 160,000 2. The Jonnie Company owns 75% of the Junior Company. On December 31, 2020, the last day of the accounting period, Junior sold to Jonnie a non-current asset for P200,000. The asset…
- On 30 June 2020 Pink Ltd acquired all assets (except for cash) and assumed all liabilities (except for debentures) of Purple Ltd. At this date, the carrying amounts of assets and liabilities of Purple Ltd were at fair value and consisted of: $15,000 32,000 40,000 Cash Accounts payable $9,000 Accounts receivable Debentures (10%) Share capital ($2 shares) Retained earnings 40,000 Inventory 110,000 Shares in listed companies 90,000 48,000 Motor Vehicle 45,000 Accumulated depreciation (15,000) In exchange for these net assets, Pink Ltd agreed to: issue two (2) Pink Ltd shares for every five (5) shares in Purple Ltd. On 30 June 2020 Pink Ltd shares were valued at $5.50 provide sufficient additional cash in order for Purple Ltd to pay out the debentures (including interest) and liquidation costs of $3,500. Required: Prepare an acquisition analysis for Pink Ltd's acquisition of Purple Ltd. wwwwOn 1st January 2021, TNT Plc bought 27,000,000 ordinary shares of the shares of RWT Ltd. At this date. Statements of Financial Position as at 31 December 2021: TNT Plc RWT Ltd £000 £000 Non-Current Assets Property, Plant and Equipment at NBV 196,875 90,000 Investments in RWT Ltd 18,375 215,250 90,000 Current Assets 56,625 24,000 Total assets 271,875 114,000 Current Liabilities 43,890 15,000 Long Term Loans 105,000 30,000 Total Liabilities 148,890 45,000 Equity Share Capital (£0.4 share) 30,000 45,000 Share Premium 45,000 15,000 Retained Earnings 47,985 9,000 Total equity 122,985 69,000 Total Liabilities and equity 271,875 114,000 You are also given the following information: 1. The fair values of the non-current assets of RWT Ltd at 1 January 2021 were £99,000,000 as compared with their book value of £99,000,000. 2. RWT’s retained earnings at 1 January 2021 were £6,000,000. Required Calculate total non-current…On 1 July 2019, SydMel Ltd acquired 80% of the issued shares of Sydney Ltd for $165 000. At this date, the equity of Lee Ltd was: Share capital $100 000 General reserve 40 000 Retained earnings 50 000 At acquisition date all the identifiable assets and liabilities of Sydney Ltd were recorded at amounts equal to fair value. At 30 June 2021, the equity of Sydney Ltd consisted of: Share capital $100 000 General reserve 50 000 Retained earnings 80 000 During the 2020–21-year Sydney Ltd recorded a profit of $15 000. Required: Prepare the consolidated worksheet entries at 30 June 2021 for SydMel Ltd assuming: At 1 July 2019, the fair value of the non-controlling interest was $39 000 and SydMel Ltd adopts the full goodwill method. SydMel Ltd adopts the partial goodwill method.
- On 1 July 2021, James Ltd acquired all the issued shares of Dean Ltd for $350,000. At this date, the financial statements of Dean Ltd showed the following: $ Share capital 270,000 Retained earnings 26,500 General Reserve 8,800 Total equity 305,300 Goodwill 25,000 At acquisition date, all the net identifiable assets and liabilities in Dean Ltd were recorded at amounts equal to their fair value except for: Asset Carrying amount ($) Fair Value ($) Inventories 15,000 18,000 Plant (cost $400,000) 210,000 220,000 The Plant was calculated to have a further life of 5 years, and was depreciated on a straight-line basis. All inventory was sold by 30 June 2020. Assume 30% tax rate Required: Prepare the acquisition analysis at 1 July 2021. Prepare the consolidation entries at acquisition date, 1 July 2021. Include narrations for each entry. Prepare the consolidation worksheet as at 1 July 2021. Prepare a Balance sheet for the reporting Group, James Ltd as at 1 July 2021 in narrative format.On 1 July 2020, Sky Ltd acquired 70% of the share capital (ex. div.) of Jim Ltd for $500,000. At that date, the relevant balances in the records of Jim Ltd were: Share capital General reserve Retained earnings Dividend payable S 434,000 35,000 126,000 14,000 At the date of acquisition all assets and liabilities of Jim Ltd were recorded in the accounting records at amounts equal to their fair values with the exception of the following assets: Carrying amount Fair value Land Machine 56,000 30,800 Land was sold on 1 May 2023 for $77,000. $ 67,200 49,000 The cost of the Machine was $58,800 and had a further 5-year life as at the date of acquisition. Jim Ltd had reported a Contingent liability at 1 July 2020 in relation to claims by customers for damaged goods. Sky Ltd placed a fair value of $12,600 on these claims at acquisition date. This claim was settled on 1 April 2023 for $7,000. Additional information: a) On 1 March 2023, Jim Ltd purchased inventory from Sky Ltd for $25,200,…PROBLEM IL. On January 1, 2019, William Corp. (qualifies as SME) paid cash of P600,000 for the 80% of the outstanding shares of Kate Company. The carrying value of the assets and liabilities of Kate on January 1, 2019 follow: Accounts Receivable P90,000 Inventory 180,000 Plant & Equipment (net of Accumulated Depreciation of P220,000) 320,000 Goodwill 100,000 Liabilities 120,000 On January 1, 2019, Kate inventory had a fair value of P150,000 and plant & equipment (net) had a fair value of P380,000. Cost of arranging the combination are as follows: legal fees for combination, P30,000; finder's fee, P50,000; other miscellaneous direct costs, P20,000. Net income of William and Kate for 2019 amounts to P158,000 and P60,000, respectively. William received dividend of P18,000 from Kate during 2019. The PPE has original useful life of 10 years and was already held for 4 years as of date of acquisition. 1. On December 31, 2019, what is the consolidated net income? 2. How much is the carrying…
- Compute for the NCI on June 30, 2023 On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share. At this time, DEF's shares have a quoted price of P3.50 per share and DEF's retained earnings is P80,000. Additional information: • DEF's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 on acquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the group uses the fair value model. • On acquisition date, DEF's building classified as property, plant, and equipment had a fair value of P30,000 in excess of its carrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation. • The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000. • An impairment test on June 30, 2023 concluded that goodwill is impaired…On 1 July 2020, Big Ltd acquired all the issued share capital of Small Ltd for cash for an amount of $1,050,000. On the date of the acquisition, the statements of the financial position of both entities are as follows: Big Ltd ($) Small Ltd ($) Assets Cash 21,000 10,500 Accounts receivable 315,000 115,500 Land 420,000 210,000 Plant 1,680,000 1,050,000 Investment in Small Ltd 1,050,000 3,486,000 1,386,000 Liabilities Accounts payable 126,000 63,000 Loans payable 840,000 315,000 Shareholders’ equity Share capital 2,100,000 420,000 Retained earnings 420,000 588,000 3,486,000 1,386,000 Required: a. Calculate the goodwill on acquisition assuming all net assets of small Ltd are recorded in fair value. b. Prepare consolidation journal entries. c.On 1 July 2021 Salzburg Ltd acquired the shares of Vienna Ltd for $60 000. At acquisition date, the capital of Vienna Ltd consisted of 44 000 ordinary shares each fully paid at $1. There were retained earnings of $4 000. All the identifiable assets and liabilities of Vienna Ltd were recorded at amounts equal to fair value except for: Carrying Fair Amount Value $12 000 Inventory Machinery (cost $100 000) $15.000 80 000 82 000 Land 60 000 70 000 Salzburg Ltd Balance Sheet as at 1 July 2021 Share capital $134 000 Retained earnings $41 400 $15 400 Cash at bank $100 000 Land $60 000 Investment in Wayne Ltd