Tackling consol questions

Question 1

If the note mentions that NCI is valued at FV and the SFP includes goodwill which has been impaired, what do you do?

Answer 1

Add a line in w2 related to impairment. In acquisition column put amount in note and in reporting put amount in SFP.

Key thing is that both figures should be negative!

Question 2

If the note says the parent is undertaking annual impairment reviews and has noticed an impairment loss on goodwill relating to sub, what do you do?

Answer 2

Add line in NCI (w4) reducing impairment loss. Do NCI % x impairment

The remaining impairment loss should be removed from W5

Recognise full amount in Goodwill

Question 3

How do you treat contingent consideration?

Answer 3

Use the earlier consideration when calculating w3

deduct difference between earlier consideration and consideration at YE from W5

Use later consideration in CSFP total (add line under CL)

Question 4

In a CSPL how do you treat inventory purp if given total sales invoice and remaining year end inventories?

Answer 4

Work out markup (given) on amount remaining year end inventories

i.e. 120% on amount remaining NOT invoiced amount