CSFP (Practice) Flashcards
Columns used in CSFP?
Parent
Subsidiary
Adjustment
Group SFP
After listing proforma?
Do adjustments (Cash in transit, PURP)
Common workings in CSFP
FV net asset value
Goodwill
NCI
Group retained earnings
Columns in net asset value?
Acquisition date
Closing date
Post-acquisition date
Rows in net asset value?
Share capital
Retained earnings
Fair value adjustments
PURP
Steps for the workings?
Asset and liabilities (PURP, cash in transit)
Goodwill
NCI
Group retained earnings
PPE carrying amount (relates to goodwill)
Where is share for share calculated?
In the shares for consideration
e.g. two for every three shares is denoted as 2/3
What happens with PPE carrying amount?
It is deducted from NCA
How to calculate loan notes?
Subsidiary shares * parent % * share price/number of shares
Eliminate unrealised profit?
Credit inventory. Reduce current assets
Is cash in transit a current asset?
Yes
What can consideration transferred include?
Shares
Loan notes
Deferred cash?
Will make a payment in the future
Calculate inventory from cost and fair value?
Fair value - cost
Net assets for parent or subsidiary?
Subsidiary
Is cash included in goodwill?
Yes
Impairment losses?
Deducted from goodwill and NCI
What is pro rating?
Process of proportionally allocating financial figures based on a specific time period
Steps for CSFP?
Proforma
Adjustments (current assets and liabilities)
Fair value adjustments
FV net assets of subsidiary
Goodwill
NCI
Retained earnings
Cash in transit for payables?
100% P + 100% S - payables amount
Cash in transit for receivables?
100% P + 100% S - cash amount - receivables amount