flashcards
What is the consolidation adjustment for Impairment of Goodwill when NCI is valued at proportionate share?
(i) Deduct from Goodwill in Goodwill Working. (ii) Deduct from P’s RE in Group RE Working. Memo: Dr. Group RE; Cr. Goodwill.
What is the consolidation adjustment for Impairment of Goodwill when NCI is valued at Fair Value?
(i) Deduct from Goodwill in Goodwill Working. (ii) Split deduction between P’s RE and NCI. Memo: Dr. Group RE (P’s share) & NCI; Cr. Goodwill.
How are Inter Company Balances eliminated after reconciliation?
Dr. Payable (adjusted balance); Cr. Receivable. Eliminate agreed balances.
How is Unrealized Profit (URP) in Inventory adjusted for P to S sale?
Deduct URP from Inventory & P’s RE. Memo: Dr. Group RE; Cr. Inventory.
How is Unrealized Profit (URP) in Inventory adjusted for S to P sale?
Deduct URP from Inventory & S’s RE. Memo: Dr. Group RE & NCI; Cr. Inventory.
What is the adjustment for Fair Value (FV) increase on S’s asset still held?
Add FV adjustment to S’s net assets & asset in SOFP. Memo: Dr. Asset; Cr. Goodwill & NCI.
How is Extra Depreciation for FV adjustment of depreciable assets treated?
Deduct extra depreciation from asset & S’s RE. Memo: Dr. Group RE & NCI; Cr. PPE.
What is the adjustment for Profit on P to S sale of Non-Current Asset?
Deduct profit from asset & P’s RE. Memo: Dr. Group RE; Cr. Asset.
What is the adjustment for Profit on S to P sale of Non-Current Asset?
Deduct profit from asset & S’s RE. Memo: Dr. Group RE & NCI; Cr. Asset.
How is Excess Depreciation on inter-company sale adjusted (P to S)?
Add excess depreciation to asset & P’s RE. Memo: Dr. Asset; Cr. Group RE.
What is the treatment for S’s Intangible Asset recognized at acquisition?
Add FV to Intangible Assets & Goodwill Working. Amortization: Deduct from asset & S’s RE. Memo: Dr. Intangible; Cr. Goodwill & NCI.
How is Negative Goodwill treated in SOCI?
Recognized as income in the acquisition year. Shown as a separate line item.
What is the adjustment for URP in closing inventory (S to P sale)? (SOCI)
Add URP to Cost of Sales. Deduct from S’s PAT in NCI Working.
How is Extra Depreciation for FV adjustment treated in SOCI?
Add to Cost of Sales/Admin Expenses. Deduct from S’s PAT. Memo: Dr. Expenses; Cr. NCI.
What is the adjustment for Profit on S to P sale of Non-Current Asset in SOCI?
Deduct profit from Other Income & S’s PAT. Memo: Dr. Other Income; Cr. NCI.
How is P’s share of URP in Inventory (A to P sale) adjusted? (SOFP)
Deduct P’s share from Inventory & Group RE. Memo: Dr. Group RE; Cr. Inventory.
What is the adjustment for Impairment of Investment in Associate?
Deduct impairment from Group RE & Investment. Memo: Dr. Group RE; Cr. Investment in A.
How is Negative Goodwill treated for an Associate?
Add to Group RE & Investment. Memo: Dr. Investment in A; Cr. Group RE.
What is the SOCI adjustment for URP in Inventory (P to A sale)?
Add P’s share of URP to Cost of Sales.
How is Extra Depreciation for FV adjustment treated in Associate SOCI?
Deduct from A’s PAT in Share of Profit Working.
