DFS - Consolidation

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tburchell11
tburchell11 Registered Posts: 25 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Do you think there will be:

If a statement of financial position consolidation is tested - There will be depreciation to account for in the fair value adjustment?

Also, the likelihood of consolidated income statement being tested?

Please say no....and be right =D

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  • Cyfarthfa
    Cyfarthfa Registered Posts: 62 Regular contributor ⭐
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    I haven't come across any examples where dep has been taken into account on fair value and didn't cover it in class either.

    With income statement though, it has come up once so it may come up.

    Go and learn it, it's really simple compared to the bs and you'd kick yourself if it comes up.

    All you need to do is remove any inter-related transactions and basically add up the subsidiary and parent. The bottom half is simply split into minority interest and equity for parent shareholders. To do this the MI equity is the % that subsidiary has mulitplied by their final profit for distribution. The equity for parent shareholders is then the balancing figure.
  • tburchell11
    tburchell11 Registered Posts: 25 Regular contributor ⭐
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    Cyfarthfa wrote: »
    I haven't come across any examples where dep has been taken into account on fair value and didn't cover it in class either.

    With income statement though, it has come up once so it may come up.

    Go and learn it, it's really simple compared to the bs and you'd kick yourself if it comes up.

    All you need to do is remove any inter-related transactions and basically add up the subsidiary and parent. The bottom half is simply split into minority interest and equity for parent shareholders. To do this the MI equity is the % that subsidiary has mulitplied by their final profit for distribution. The equity for parent shareholders is then the balancing figure.

    Thanks for the reply..

    I will go and learn it, but I did want to concentrate on just standards tonight!! Back to the drawing board....also may as well crack on with associates whilst I am there!!!
    So you haven't done any revision for Dep'n on Fair value??
  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
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    I havent, it hasnt come up before. Thing is, it's only one mark and I dont wanna waste time learning it when we need to learn the standards.
    I'm now brain dead.
    Good luck!!
  • Cyfarthfa
    Cyfarthfa Registered Posts: 62 Regular contributor ⭐
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    no none at all, it hadn't even crossed my mind until you just mentioned it.

    I don't even think it's in the kaplan book..

    I'm assuming if you're doing a BS then you would just take off the amount that should be depreciated for that period and if doing IS then add in extra charge.

    Think i'll just ignore this bit!!

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