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[13 Nov 2010 | No Comment | 2,594 views]
Tools ‹ IFRS LIST.COM – The online community about IAS IFRS, Accounting and Auditing — WordPress

Tools ‹ IFRS LIST.COM – The online community about IAS IFRS, Accounting and Auditing — WordPress.

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BUSINESS COMBINATION »

[23 Sep 2010 | 7 Comments | 5,772 views]

Dear Members
Please advice on the below query
Company A buys 70% shares of Company B and become the holding company during 2008. so while preparing accounts for the year 2008, goodwill is calculated. Now in 2009, Company A acquires additional shares but the share holding remains the same. so while preparing accounts for 2009, do we need to calculate goodwill again? if yes whats is best method.
please advice
best regards

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BUSINESS COMBINATION, CONSOLIDATION »

[27 Aug 2010 | 6 Comments | 3,820 views]

If  company (A) has a subsidiary(b) during acquisition no goodwill was recognized  then the subsidiary (b) was merged with another company resulted for change it’s capital structure , so the Investment of (A) at (b) is now greater than it’s share of  new capital of (b) is the difference recognized as goodwill or what
please Help

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BUSINESS COMBINATION »

[22 Aug 2010 | 5 Comments | 2,331 views]

Do I still need to account for a 1% minority interest?
Are receivable from shareholders (part of share capital) eliminated in consolidation or not.

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BUSINESS COMBINATION, CONSOLIDATION »

[22 Aug 2010 | 5 Comments | 4,001 views]

If the subsidiary was established prior to the parent company, what are the possible complications? I.e. because the Holdings require higher initial capital the management decided that once the subsidiary generates revenue. the revenue can be use to fund the share capital of the parent.
On the establishment of the subsidiary the shareholders put more money over the share capital. can i transfer the excess of shareholders capital in the subsidiary to the parent company? what would be my entry?Please help.

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BUSINESS COMBINATION »

[19 Aug 2010 | 4 Comments | 2,377 views]

How do i record an acquisition without investment made by the parent to the subsidiary?

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BUSINESS COMBINATION »

[13 May 2010 | 6 Comments | 6,012 views]

Looking for an example of a company that has recorded a gain on a bargain purchase resulting from a business combination. Ideal if it was a mining company.
Thanks
Gord

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BUSINESS COMBINATION, CONSOLIDATION »

[12 Mar 2010 | 3 Comments | 5,712 views]
Retained losses on Investment in subsidiary

If a subsidiary has a retained losses and it increase from year to year
In the parent separate financial statement as Subsidiary was recognized at cost Is there is a need to impairment or write down the cost of the investment of this subsidiary??

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BUSINESS COMBINATION »

[18 May 2009 | 4 Comments | 4,171 views]

Dear All,
My question is that, in a situation of merger or business combination, where the structure is such that a new company A is formed to take over the businesses of B and C.
The question is whether IFRS 3 Business Combinations is applicable in this case as practically the entire IFRS 3 is based on an Acquirer and an Acquiree which are not present in this structure.
Thanks
Zuhar

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BUSINESS COMBINATION, CONSOLIDATION, DOCUMENTS, IFRS »

[15 May 2009 | 3 Comments | 3,573 views]
Consolidation – IFRS

Dear All,
Please let me know the treatment of Existing negative goodwill incase of first time adoption of IFRS
Regards
Chirag

BUSINESS COMBINATION, CONSOLIDATION, DOCUMENTS »

[11 Apr 2009 | No Comment | 5,032 views]
Entries – Consolidation of financial statements

Dear All,
Request your valuable advice on the entries to be passed in the books of 1. Consolidated company 2. Stand Alone Parent Company for the purchase of shares on March 1,2009 and also the treatment of Goodwill.
Company X had already acquired 50 % …

BUSINESS COMBINATION, CONSOLIDATION, DOCUMENTS »

[19 Mar 2009 | 3 Comments | 8,463 views]
Business Combinations, Consolidation (IFRS 3 and IAS 27) literature

Hello,

I am an Austrian student and I would like to write about consolidation. More specifically I am going to write a comparison between full consolidated corporations and consolidation at equity. As far as I know, equity consolidation exists as te…

BUSINESS COMBINATION »

[10 Mar 2009 | 5 Comments | 3,529 views]

Dear all,
I need clarification with regard to how to treat an intra group trading b/n parent and subsidiaries group accounts during preparation of consolidated statement of financial position as well as income statement. I always confuse and need a clear guideline on how to treat it.
For instance
the subsidiary sold to the parent in the post acquisition period for an amount of $8million. The subsidiary made a mark up on cost of 40% on the sales. The Parent sold $5.2 million(at cost to the parent) of these goods. How should I …

BUSINESS COMBINATION »

[14 Feb 2009 | 3 Comments | 3,605 views]

Dear Experts,
Do we need to pass an entry for share of loss / profit in joint venture in the books of subsidiary stand alone books FS and also the same in the books of parent company stand alone books.
or to be considered only for out of books consolidation purposes.

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BUSINESS COMBINATION, CONSOLIDATION, DOCUMENTS »

[4 Feb 2009 | One Comment | 1,978 views]
In case of newly established Subsidiary

In case of newly established subsidiary, which have not stared his commercial activities and in construction phase, is it require to consolidate it or we can show it on cost. Plz tell me What will be the right treatement

AUDIT, BUSINESS COMBINATION, CONSOLIDATION, DOCUMENTS, FAIR VALUE, IFRS, INTERNAL AUDIT »

[14 Dec 2008 | No Comment | 3,520 views]
Acquisition accounting

Dear all,
I have a question in relation to acquisition accounting in accordance with
IFRS3. In this case a parent company A acquires all the shares in
subsidiary company B for (say) 50M. This cost price represents a goodwill
over the fair value of the …

BUSINESS COMBINATION »

[28 Aug 2008 | No Comment | 2,077 views]

Suppose Entity A acquires Entity B in a business combination and all the considerations have been completed by 31 December 2007 except that government approval which was still pending as at year end. Should entity A consolidate Entity B as at 31 December 2007?

Regards,

Nyasha

I believe the answer lies in the issue of control. If the acquirer still does not have control, i.e. voting rights, directorship, active management, no consolidation should be done until Control is obtained. In the meantime, the Acquirer can book in the investments in subs as …

BUSINESS COMBINATION »

[28 Aug 2008 | No Comment | 2,370 views]

Dear All,
one of our Client has purchased a 100 % interest in a Subsidiarywhich is loss Making…
 
He has passed the following entry in their own books
 
Goodwill DR                120,000
Investment CR                          20,000       (Equity of subsidiary)
Payable to subsidiary              100,000        (purchase price)
 
My question is can Investment AC be -VE at initiation. and as far as i remember the initial recognition of an asset should be at its cost.and my plea to the Client is that the entry should be
 
Investment DR 100,000
                 Payable           100,000
and goodwill be shown in Consolidated ACs.
 
Kindly comment….and correct me if i am wrong.
 
Regards
I …