Loss / profit from joint venture / subsidiary

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.

By |February 14th, 2009|BUSINESS COMBINATION|3 Comments

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


Investment decision

Dear Every one, Can any one help to solve the following problems:     Say, XY is a joint venture company between X & Y with 70:30 proportion with issued capital of  $100. Now, Y intends to offload its share to Z company for a consideration of $ 80. Now the question is how this investment [...]

By |December 15th, 2008|IFRS|0 Comments

Difference between affiliates and subsidaries

Dears Would you please explain me what is the difference between affiliates and subsidaries, and then if there is any difference in accounting treatments.( i am asking these question w.r.t an investment co.) 2nd thing is how i will treat the personal expenses of a partner which are being paid by the co. and where [...]

By |December 15th, 2008|CONSOLIDATION|0 Comments

Where can I find pdf copy of US GAAP and US GAAP APB?

Do anyone know where I can download copy of US GAAP and US GAAP APB? Thanks Dessanti for your answer Our position is less than 1%, we bought in the active market Euro a little position to speculate in market price. The IAS 39 don't include equity investment as applicable financial asset to recognized the [...]

By |December 15th, 2008|LOCAL GAAP vs IFRS|0 Comments

Accounting for telecomunication company

Dear all, I need your suggestion. Hmm... I just already join as a DETASERING in a NEW telecomunication company, a subsidiary of my previous company. Just for your information, the holding company is a company that related to supply gas energy. We couldn't adopt an accounting polcies from the holding. So, I must try to [...]

By |December 15th, 2008|OTHER|0 Comments

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 ...

Impairment Goodwill

Por favor podría alguien indicarme en donde puedo encontrar información sobre metodologías para la medición del deterioro del Goodwill. Sería Adecuado usar multiplos como base para su medición. Please could someone tell me where can I find inform...

By |December 14th, 2008|AUDIT, CONSOLIDATION, DOCUMENTS, IAS 36, IFRS|0 Comments

Equity investments AFS is a non-monetary items?

Hi all, We need some guidance in connection to apply the rules explained in IAS 21 related to if investments AFS in capital instruments is a non-monetary item.  Theses equity investments were made without the intention of take control on any compa...

By |December 14th, 2008|DOCUMENTS, FAIR VALUE, FINANCIAL INSTRUMENTS, IAS 16, IAS 2, IAS 21, IAS 39, IFRS|0 Comments

Deemed sale of subsidiary

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 [...]

By |August 28th, 2008|IFRS|0 Comments

Minority Interest

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 [...]

By |August 28th, 2008|IFRS|0 Comments

Goodwill & Minority calculation

Dear All   If a company is issuing shares to its parent compnay on stage by stage basis then what will be procedure to calculate goodwill and minority interest.   for eg.   on 20/03/2008 – suppose a Company (ABC) – subsidiary comapny iss...


Equity accounting.

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 prio...


Recognition of Transfer Pricing charges

Quik question for the group. How would you record transfer pricing charges to a foreign subsidiary above the profit line in the P&L?  Specifically, if the TP charge is US$ 1.0MM – I understand the parent side would be an entry to a revenue account; however, the question is how to record it on the [...]

By |August 28th, 2008|IFRS|0 Comments

IAS-27 query

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 [...]

By |August 28th, 2008|IFRS|0 Comments