Is it okay to set off receivables from minority shareholders aganist
minority share of profit at the balance sheet date.  

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Dear all,

Good day!

A holding company had a subsidiary which is 100% owned. In 6 March 2006, the subsidiary issued new shares from $2 to $50,000 which changed the shareholdings from 100% to 40%.  As I read this is considered as deemed sale. The year ended of the holding company and the subsidiary is 31 December 2006.

These are my queries:

In view of the Holding company, how much is the equity take up considering the date of deemed sale?

In view of the holding company, how to compute for the gain/loss of the deemed …

Dear All

Can you please advice me on the calculation of minority interest.

the case is like as below

The subsidary company has credit balance in the share application money and the share premium from parent company. the parent company is holding 60% shares in the subsidiary. so while calculation minority interest do we need to consider share application and share premium or only equity capital and other reserves will be considered.

Regards

While calculating minority interest consider the share premium and application money with equity capital and reserves.

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Dear All,
 
Good day ahead………….
 
We have purchased shares of a company as an investment only. We have purchased as lot by lot from the year 2005 onwards until year 2007 and it is now 110000 shares valuing  USD 2.5 mn and we have got bonus shares of 10% of the holding on March 2008. Now we have sold 28000 shares  on April 2008. All the shares we have purchased from share market only with different prices.
 
My issue is how I can co-relate the sale with the cost of investment, like first in …

On the date of transition, a company could choose, as it´s deemed cost, historical cost if the previous gaap is not significantly different than IFRS or fair value for PPE, Intangibles and Investment property. I am not sure if I have it clear but under IAS 16, one can choose the deemed cost on a per-item basis on the date of transition.
Is the option at date of transition to use FV or historical cost on a per-item basis available for IAS 40 Investment Properties and IAS 38 Intangibles?
For measurement after recognition, all …

I read this statement some where:
The purposes of a quasi-reorganization are to restate overvalued assets to their lower
fair values (and thus reduce future depreciation) and to eliminate a retained earnings
deficit (and thus facilitate the declaration of dividends).
How overvaluing  assets to their lower fair values will reduce the current deficit???
Although it will reduce the future deprecistion??

Maybe there are revaluation surpluses under equity that can be transferred to the deficit while impairing the overvalued assets?
Kind regards,
Henk

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Hi Everyone
Need a little help on this one.
When it has been determined under SIC 12 that an SPE will need to be consolidated, where would one book the equity of the SPE in the consolidated financial statements of the parent entity? Does anyone in the group have a worked example of the consolidation procedure?
Thanks
Vatsala

It would simply a separate form of equity (call it Special equity or Other
equity) without control over the core parent company and subsidiaries and
with special rights in respect of the allocation of income.
Disclose the specialties around this …

Arial;”>Hi
 
When a parent company preperaing consolidated financials lost control and reaches significant influence , attracking equity method.
 
The change in ownership of subsidiary should be accounted for subsequently or to restate the prior period.
 
That is equity method should be applied from the date of change or should do this restructring from prior period financial staement presented.
thanks
With Best Wishes and Regards
SHABI

 
Dear Shabih,
 

 
When part of an investment in a subsidiary is sold during the reporting period, the parent should record its investment after the disposal in the consolidated accounts as follows:
- If a …

Dear all,
 
 
Please help in confirming the merger entry for the following case:
 
Company A acquired 50% interest in Company B during 2004. The other 50% was held by the Company C, Company A’s Parent Company. Upon acquisition, Company A recognized a goodwill under purchase method of accounting.
 
Cost 100
Investment in B – 50
Goodwill 50
 
During 2006, the 50% shares held by the Parent Company was transferred to Company A, giving it the full ownership of Company B. The parent agreed that the credit of 50% will go to ADDITIONAL PAID IN CAPITAL (APIC). During 2006, the …

Hello
 
i have got a question on transfer of shares involving share permium, can any one help ?
 
Facts :
(1) A holds 100% on C. 
 
(2) C ’s capital structure : 10,000 shares of US$1 par value. 
 
(3) A has invested in Co C of USD 1m for share capital of USD 10,000 and share premium of USD 990,000. 
 
(4) C incurs a loss and has negative net assets value.
 
If structure changes that there is an immediate holding co of  C named B, then A holds 100% on B and then B 100% on C.
 
Questions :
(1) Can A transfer the shares to B at consideration of USD 1 …

Dear all,
 
I have a querry in IAS 20- Government Grants:
 

In the scope paragraph of the standard, those entities are excluded from the applicability of this standard which are owned by “Government”.

Q) My querry is that which government is refered in this paragraph?
        a) That Government which has provided grant to the reporting entity?
        b) Any government?
 
The confusion arises as in case the grant is given by the same government which also owns that entity, this standard do not apply to that standard altogether. As the owners contribution, in any form …

Hi,
What disclosures does a company need to give for Interest rate swaps and which standards are applicable for this.
Thanks
Aneel

Hi Prethy

Actually available for sale is an open category that means that if company did not decide where to classify it can be classified as  available for sale. However for held for trading investments are bought to resell for short term gain rather to earn dividend but available for sale normally includes investment which are not held for short term gain rather which are carried for earning long term capital gain or dividend …

Sirs/Madam,
I would like to know weather or not it is permissible to issue bounce shares against reserve created out of revaluation of fixed assets, with references. If not, can the revaluation reserves be used for any purpose before the sale/ de-recognition of the fixed asset

 
No, the revaluation reserve is restricted to use for revaluation increases and decreases only, see IAS 16 PPE sub 39 – 41, only when assets are sold, the whole surplus will be realized in the income statement or when depreciated, that part may be released to …

Hi All
This is Muhammad Naveed
I have a query regarding the consolidation of subsidiaries. Does IAS-27 allow us to not consolidate subsidiaries which are immaterial for the group?
Is it specifically mentioned somewhere in IAS?
 
Regards
Muhammad

Well Naveed
Actually materiality is an underlying concept of the Financial Statements.So anything which is immaterial needs not to be disclosed or adjusted.
 
Thanks and regards

IAS 1 is the overall standard to refer to:

Materiality and Aggregation
29.        Each material class of similar items shall be presented separately in the financial statements.  Items of a dissimilar nature or function shall be presented separately unless …

Hi all,
 
I am confused regarding the use of cost method or equity method in the separate financial statements of a parent company to report for investments in its subsidiaries.
 
Regards,
 
Osama

The Framework and IAS 1 allow both valuation methods. When company accounts are filed in combination with consolidated accounts it is normal business behaviour to include the investments in group companies/subsidiaries at equity value. This is to avoid that shareholders equity is different in the consolidated accounts as compared to the company accounts. However that is not ruled or prescribed by IFRS/IAS. Company …

Dear All,

Our company has constructed a building which is to be our Head office. As part of improvements made on the buildings land, management decided to put up a garden with orchards and both Traditional and exotic trees. The garden is to beatify the environment as part of the environmental degradation measures and also enable the staff to go and relax. Out of the expenses so far incurred its felt we capitalize such expenses. I have gone thru the IAS 41 on agriculture where by they can be taken as …

Hi,

 
My name is Aashima Tandon. Can anybody tell me what exactly is asset held for sale and negative goodwill? What

Hi there,
sale?

Assets held for sale include assets (or groups of
assets to be disposed of) whose carrying amount will
be recovered principally through a sale transaction
rather than through continuing use.
What would be its treatment?
In accordance with IFRS (IFRS 5), discontinued
operations/assets held for sale are measured
at the lower of their carrying amount or fair value
less costs to sell.
Discontinued operations/assets held for sale are
presented in the financial statements as follows:
• On the balance …