DFS Revision Game

reddwarf

Hmm I'm thinking non current assets... adjusted for post acquisitin changes in the intestor's share of the net assets...

per below

# Accounting for Investments in Associates 373 Definitions 3. For the purpose of this Standard, the following terms are used with the meanings specified: 3.1 An associate is an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint venture3 of the investor. 3.2 Significant influence is the power to participate in the financial and/ or operating policy decisions of the investee but not control over those policies. 3.3 Control: (a) The ownership, directly or indirectly through subsidiary(ies), of more than one-half of the voting power of an enterprise; or (b) control of the composition of the board of directors in the case of a company or of the composition of the corresponding governing body in case of any other enterprise so as to obtain economic benefits from its activities. 3.4 A subsidiary is an enterprise that is controlled by another enterprise (known as the parent). 3.5 A parent is an enterprise that has one or more subsidiaries. 3.6 A group is a parent and all its subsidiaries. 3.7 Consolidated financial statements are the financial statements of a group presented as those of a single enterprise. 3.8 The equity method is a method of accounting whereby the investment is initially recorded at cost, identifying any goodwill/capital reserve arising at the time of acquisition. The carrying amount of the investment is adjusted thereafter for the post acquisition change in the investor’s share of net assets of the investee. The consolidated statement of profit and loss reflects the investor’s share of the results of operations of the investee. Accounting Standard (AS) 27, ‘Financial Reporting of Interests in Joint Ventures’, 3 defines the term ‘joint venture’ and specifies the requirements relating to accounting

noodles

Practise exam 3 + 4 DFS Osborne book

can not find the answers to the practise exams 3 and 4 and want to check my answers off. any chance of anyone emailing them to me

thank you so much in advance - panic panic!!

Rinske

nscuffell wrote: »

can not find the answers to the practise exams 3 and 4 and want to check my answers off. any chance of anyone emailing them to me

thank you so much in advance - panic panic!!

Sooo I'm confused if we still got a question going now or not?

Other than the request for the answers, which I don't have. (Sorry, I avoided those, as they are so completely different from the practice exams online, so I never sent them in or got anything back)

reddwarf

Spot on Esem! My kaplan revision passcards say :

The group share of the post acquisiton reserves of the associate will be included in the group retained earnings. In t he case quoted the post acq reserves are £20K and investment is 40%.

Rinske

New question to keep us going again...

Could you define current assets according to IAS 1?

noodles

Fom memory I believe it is:-

cash and cash equivalents
assets kept for trading for next 12 months
assets used/sold in operating cycle

Q - Define Current Liab

Rinske

nscuffell wrote: »

Fom memory I believe it is:-

cash and cash equivalents
assets kept for trading for next 12 months
assets used/sold in operating cycle

Q - Define Current Liab

I think you are right on the current assets.

For current liabilities it's

Those liabilities that are to be settled within the normal operating cycle, which are expected to be settled within 12 months and where the company does not have an unconditional right to defer the payment to more than 12 months, I think...

Q How does profit affect the accounting equation?

reddwarf

This is a guess but it increases assets and equity otherwise the equation won't work?