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S.F. State - MKTG - 431
MKTG043101-F10R: Mini test 8https:/ilearn.sfsu.edu/mod/quiz/review.php?attempt=195372You are logged in as Khine Yu Lwin (Logout)iLearn MKTG043101-F10R Quizzes Mini test 8 Review of attempt 5Mini test 8 Review of attempt 5Finish reviewFriday, October
S.F. State - MKTG - 431
MKTG043101-F10R: Mini test 9https:/ilearn.sfsu.edu/mod/quiz/review.php?attempt=223949You are logged in as Khine Yu Lwin (Logout)iLearn MKTG043101-F10R Quizzes Mini test 9 Review of attempt 1Mini test 9 Review of attempt 1Finish reviewSunday, Novembe
S.F. State - MKTG - 431
MKTG043101-F10R: Mini test 9https:/ilearn.sfsu.edu/mod/quiz/review.php?attempt=226417You are logged in as Khine Yu Lwin (Logout)iLearn MKTG043101-F10R Quizzes Mini test 9 Review of attempt 2Mini test 9 Review of attempt 2Finish reviewMonday, Novembe
S.F. State - MKTG - 431
MKTG043101-F10R: Mini test 9https:/ilearn.sfsu.edu/mod/quiz/review.php?attempt=226632You are logged in as Khine Yu Lwin (Logout)iLearn MKTG043101-F10R Quizzes Mini test 9 Review of attempt 3Mini test 9 Review of attempt 3Finish reviewMonday, Novembe
S.F. State - MKTG - 431
MKTG043101-F10R: Mini test 9https:/ilearn.sfsu.edu/mod/quiz/review.php?attempt=226790You are logged in as Khine Yu Lwin (Logout)iLearn MKTG043101-F10R Quizzes Mini test 9 Review of attempt 4Mini test 9 Review of attempt 4Finish reviewMonday, Novembe
S.F. State - MKTG - 431
MKTG043101-F10R: Mini test 9https:/ilearn.sfsu.edu/mod/quiz/review.php?attempt=227138You are logged in as Khine Yu Lwin (Logout)iLearn MKTG043101-F10R Quizzes Mini test 9 Review of attempt 5Mini test 9 Review of attempt 5Finish reviewMonday, Novembe
S.F. State - MKTG - 431
MKTG043101-F10R: Mini test 9https:/ilearn.sfsu.edu/mod/quiz/review.php?attempt=227397You are logged in as Khine Yu Lwin (Logout)iLearn MKTG043101-F10R Quizzes Mini test 9 Review of attempt 6Mini test 9 Review of attempt 6Finish reviewMonday, Novembe
The Open University - ACT - 407
B407F Week 1 Tutorial DiscussionQuestion 1 Refer to page 53 - 54 and 56 of 2010 annual report of Caf de Carol Holding Limited and identify accounts which will only be disclosed in the consolidated financial statements as comparing to single company finan
The Open University - ACT - 407
B407F Week 1 Tutorial Discussion SolutionQuestion 1 Statement of financial position Investments in associates Investments in jointly controlled entities Minority interests (non-controlling interests) Statement of income Share of profit of associates Shar
The Open University - ACT - 407
ACT B407F Lecture 2 Consolidation I : handouts Example 1 wholly-owned subsidiary1.1 on acquisition H Ltd acquires all of the share capital of S Ltd on 1 January 20x1 for cash of $3,800. The statements of financial position of H Ltd and S Ltd at 31 Decemb
The Open University - ACT - 407
B407F Week 2 Tutorial Business CombinationQuestion 1 X Limited (X) issues ordinary shares to shareholders of Y Limited (Y) in exchange for all of the outstanding ordinary shares of Y. Y's shareholders will own 50.1% of the voting interests of the combine
The Open University - ACT - 407
B407F Week 3 Tutorial Solution - Legal requirements of group accountsQuestion 1 55% A C B D Question 2 (a) Alpha 20% Epsilon 60% 100% Beta 80% 10% Gamma (b) Alpha and subsidiaries Beta, Gamma, Epsilon (c) Holding Companies Alpha ,Beta, Delta 15% Delta 10
The Open University - ACT - 407
B407F Week 3 -Consolidated Financial Statements (1) Illustration 1 Acquisition method (Cash) Statement of Financial Position before acquisition: Company A $m $m Tangible non-current assets 600 Current assets Cash 1,000 Accounts Receivable 300 Inventories
The Open University - ACT - 407
B407F Week 3 Tutorial - Legal requirements of group accountsQuestion 1 Identify which of the following companies are subsidiaries of A Ltd. A Ltd. owns 100% of B Ltd. A Ltd. owns 55% of C Ltd. B Ltd. owns 80% of D Ltd. A Ltd. owns 15% of E Ltd. E Ltd. ow
The Open University - ACT - 407
B407F Week 4 -Consolidated Financial Statements (II) Illustration 6 Fair value adjustments with depreciationAt the date of acquisition, the fair value of Company B was equal to their carrying amounts with the exception of an item of plant, which had a fa
The Open University - ACT - 407
B407F Week 4 Tutorial -Consolidated Financial Statements (1)- supplementary Question 1 Honey Limited ("Honey") has acquired 80% share holdings in Sugar Limited ("Sugar") on 1 January Year 1 financed by the issue of 2 million of $1 ordinary shares of Honey
The Open University - ACT - 407
B407F Week 4 Tutorial -Consolidated Financial Statements (1)- supplementary Question 1 Honey Limited ("Honey") has acquired 80% share holdings in Sugar Limited ("Sugar") on 1 January Year 1 financed by the issue of 2 million of $1 ordinary shares of Honey
The Open University - ACT - 407
B407F Week 4 Tutorial -Consolidated Financial Statements (1) Question 1 HKFRS 3 Business combinations permits a non-controlling interest at the date of acquisition to be valued net assets or fair value approach.(a)Explain the nature of non-controlling i
The Open University - ACT - 407
B407F Week 4 Tutorial -Consolidated Financial Statements (1) - supplementary Question 1 (a)(i) Goodwill arising on consolidation $'000 Cost of investment (2,000,000 shares x $7) Cash Less: net assets acquired Share capital Revaluation reserves Other reser
The Open University - ACT - 407
B407F Week 4 Tutorial Solution-Consolidated Financial Statements (1) Question 1 (a) Where a holding company does not acquire the whole issued capital of a subsidiary, the interest owned by other shareholders is known as "noncontrolling interest" (NCI). NC
The Open University - ACT - 407
B407F Week 4 Tutorial -Consolidated Financial Statements (1) - supplementary Question 1 (a)(i) Goodwill arising on consolidation $'000 Cost of investment Cash Less: net assets acquired Share capital Revaluation reserves Other reserves Retained earnings Go
The Open University - ACT - 407
B407F Week 4 Tutorial -Consolidated Financial Statements (1) - supplementary Question 1 (a)(i) Goodwill arising on consolidation $'000 Cost of investment Cash $'000Less: net assets acquired Share capital Revaluation reserves Other reserves Retained earni
The Open University - ACT - 407
Consolidation (2)1Fair valueAs we have to account for acquisition at the fair value of assets and liabilities acquired at the date of acquisition. The general idea is that the fair value is "amount at which an asset or liability could be exchanged in a
The Open University - ACT - 407
Intra group TradingWhen the parent trades with a subsidiary, the parent's statement of financial position shows and asset/liability, and an equal, but opposite, asset/liability is shown in the statement of financial position of the subsidiary. On consoli
The Open University - ACT - 407
B407F Week 5 -Consolidated Statement of Income (II) Illustration 8 Inter-company purchase and salesSame facts as in illustration 7, during the year, Company A sold $270m goods to Company B for cash. Company A had marked up these goods by 50% on cost. Com
The Open University - ACT - 407
B407F Week 5 Tutorial -Consolidated Financial Statements (II)Question 1 (D & E) Statements of financial positions as at 31 December Year 4 of two companies were as follows: D Ltd. $000 204 100 20 100 140 564 200 14 240 110 564 Additional information: 1.
The Open University - ACT - 407
B407F Week 5 Tutorial -Consolidated Financial Statements (II) Question 1 (D & E)1. Revaluation on Non-depreciable Assets 2. Intra-group cash transit 3. Intra-group liabStatements of financial positions as at 31 December Year 4 of two companies were as f
The Open University - ACT - 407
B407F Week 5 Tutorial Solution -Consolidated Financial Statements (II)Question 1 (D & E) Consolidated journal entries: Debit ($000) Share Capital 20 Revaluation reserves 30 Pre-acq profit 40 Goodwill 28 Investment in E Limited NCI (W1 Elimination of inve
The Open University - ACT - 407
B407F Week 5 Tutorial Solution -Consolidated Financial Statements (II) Question 1 (D & E) Consolidated journal entries: Debit ($000) Share Capital 20 Revaluation reserves 30 Pre-acq profit 40 Goodwill 28 Investment in E Limited NCI (W1 Elimination of inve
The Open University - ACT - 407
B407F Week 5 Tutorial Solution -Consolidated Financial Statements (II) Worksheet Question 1 (D & E) Consolidated journal entries: Debit ($000) Share Capital Revaluation reserves Pre-acq profit Goodwill Investment in E Limited NCI (W1 Elimination of invest
The Open University - ACT - 407
B407F Mid-term revision You are the financial accountant of Knife Limited (Knife), a listed company in Hong Kong. In Year 1, Knife acquired Fork Limited (Fork) as its subsidiary. The financial statements of the two companies for the year ended 31 December
The Open University - ACT - 407
B407F Mid-term revision solution Question 1 (a) Consolidation adjustments Debit $000 Elimination of investment Share capital Retained earnings at acquisition (1,300-800) Contingent assets Fair value adjustment P & M Goodwill arising on consolidation Inves
The Open University - ACT - 407
B407F Mid-term revision solution Question 1 (a) Consolidation adjustments Debit $000 Elimination of investment Share capital Retained earnings at acquisition Contingent assets Fair value adjustment P & M Goodwill arising on consolidation Investment in For
The Open University - ACT - 407
B407F Week 6 -Consolidated Statement of Income (II)Review Exercise (HKICPA Module A Dec 2010) Note: adjustments on retained earnings due to: acquisition of subsidiary 3 years ago Upstream inter-company sale of inventory with opening inventory Inter-compa
The Open University - ACT - 407
B407F Week 6 -Consolidated Statement of Income (II) Review Exercise (HKICPA Module A Dec 2010) Solution Consolidation elimination entries Debit (HK$000) 16,000 2,500 12,000 1,200 Credit (HK$000)(1) Share Capital Intangible assets Retained earnings at acq
The Open University - ACT - 407
B407F Week 6 Tutorial -Consolidated Statement of Income (II)Question 1 Hamburg Ltd acquired 80% shareholdings in Scott Ltd on 1 January 2009 when the retained earnings of Scott Ltd were $13,150,000. The summarized statement of financial position and inco
The Open University - ACT - 407
B407F Week 6 Tutorial -Consolidated Statement of Income (II) Question 1 Hamburg Ltd acquired 80% shareholdings in Scott Ltd on 1 January 2009 when the retained earnings of Scott Ltd were $13,150,000. The summarized statement of financial position and inco
The Open University - ACT - 407
B407F Week 6 Tutorial Solution -Consolidated Statement of Income (I) Question 1 (i) Consolidation Journal Entries Debit $000 1. Share capital - Scott Ltd 24,000 Retained earnings - Scott Ltd at acquisition date 13,150 Goodwill 4,880 Investment in Scott Lt
The Open University - ACT - 407
B407F Week 6 Tutorial Solution -Consolidated Statement of Income (I) Question 1 (i) Consolidation Journal Entries Debit $000 1. Share capital - Scott Ltd 24,000 Retained earnings - Scott Ltd at acquisition date 13,150 Goodwill 4,880 Investment in Scott Lt
The Open University - ACT - 407
B407F Week 6 Tutorial Solution -Consolidated Statement of Income (I) Question 1 (i) Consolidation Journal Entries Debit $000 1. Share capital - Scott Ltd Retained earnings - Scott Ltd at acquisition date Goodwill Investment in Scott Ltd Non-controlling in
The Open University - ACT - 407
Comprehensive Illustration 1 (H & S) Statement of Financial Position before acquisition: H Limited $m 500 525 805 700 200 2,730 800 190 450 400 1,840 890 2,730 S Limited $m 350 500 420 100 1,370 300 400 300 1,000 370 1,370Tangible non-current assets Inve
The Open University - ACT - 407
HKAS27 (old)Hold over 50% of voting rights Presume control existsHKFRS10 Consolidated Financial statement(guidance on control and consolidation) Power over >50% of voting rights (by agreement) Power to govern financial and operating policies Power to
The Open University - ACT - 407
HKAS28 (2011) Investments in associates and joint arrangementsAssociate companyAn entity over which the investor has significant influence and which is neither a subsidiary nor an interest in a joint venture >20% <50%Create PDF files without this messa
The Open University - ACT - 407
B407F Week 9 Tutorial Investment in associates and joint arrangementQuestion 1 On 1 January Year 1, Phoenix Ltd, a company with subsidiaries, acquired a 25% holding in Ace Ltd for $600m. On that date, the fair value of net assets of Ace Ltd was $2,000m.
The Open University - ACT - 407
B407F Week 9 Tutorial Investment in associates and joint arrangement Question 1 On 1 January Year 1, Phoenix Ltd, a company with subsidiaries, acquired a 25% holding in Ace Ltd for $600m. On that date, the fair value of net assets of Ace Ltd was $2,000m.
The Open University - ACT - 407
B407F Week 9 Tutorial solution Investment in associates and joint arrangement Question 1 (a) Phoenix Limited is required to use the equity method of accounting for its investment in Ace Limited if Ace is its associate and Phoenix is preparing consolidated
The Open University - ACT - 407
B407F Week 9 Tutorial solution Investment in associates and joint arrangement Question 1 (a) Phoenix Limited is required to use the equity method of accounting for its investment in Ace Limited if Ace is its associate and Phoenix is preparing consolidated
The Open University - ACT - 407
B407F Week 9 Tutorial Worksheet Investment in associates and joint arrangement Question 1 (a) Phoenix Limited is required to use the equity method of accounting for its investment in Ace Limited if Ace is its associate and Phoenix is preparing consolidate
The Open University - ACT - 407
Week 9 Investments in associate and joint arrangement Illustration 1 On 1 January Year 1, Company A issued 200 $1 shares at par and used the entire proceeds of $200 to acquire 25% of the share capital of an associated company at a cost of $200. The key fi
The Open University - ACT - 407
B407F Week 10 Merger Accounting Illustration 1 Company A and Company B are two companies of similar size. They wish to merge their interests into a combined organization but with the separate identity of each company being retained. The combination is to
The Open University - ACT - 407
B407F Week 10 Tutorial Merger Accounting Question 1 State the factors that would influence a management decision on whether to use the merger or the acquisition basis for the consolidation of a new subsidiary. Question 2 The statements of financial positi
The Open University - ACT - 407
B407F Week 10 Tutorial Solution Merger Accounting Question 1 Management might prefer to use merger accounting for the following reasons: Pre-acquisition profits of the subsidiary are not eliminated, so that there will be greater flexibility in post-acquis
The Open University - ACT - 407
B407F Week 10 Tutorial Worksheet Merger Accounting Question 1 Management might prefer to use merger accounting for the following reasons: Pre-acquisition profits of the subsidiary are not eliminated, so that there will be greater flexibility in post-acqui
The Open University - ACT - 407
Accounting for merger 1Concept of merger accountingNo acquisition has occurred and there has been a continuation of risk and benefits to the controlling party that existed prior to the business combination Focus on nondomination.2Share Premium (S
The Open University - ACT - 407
B407F Week 11 Consolidated statement of cash flows Illustration 1 Carver Limited is a listed company incorporated in 1958 to produce models carved from wood. In 1989 it acquired a 100% interest in a wood importing company, Olio Ltd; in 2004 it acquired a
The Open University - ACT - 407
Consolidated Statement of Cash FlowsGroup Statement of Cash FlowsGoodwill arising on consolidation Non-controlling interest Share of profit or loss of associates Acquisition and disposal of subsidiariesOnly deals with flows of cash and cash equivalents
The Open University - ACT - 407
B407F Week 11 Tutorial - Consolidated Statement of cash flows Question 1 Drafted consolidated statement of financial position for A Group as at 31 December: Year 1 Year 0 $'000 $'000 $'000 $'000 ASSETS Non-current assets Machinery at net book value Goodwi
The Open University - ACT - 407
B407F Week 11 Tutorial - Consolidated Statement of cash flows Question 1 Drafted consolidated statement of financial position for A Group as at 31 December: Year 1 Year 0 $'000 $'000 $'000 $'000 ASSETS Non-current assets Machinery at net book value Goodwi
The Open University - ACT - 407
B407F Week 11 Tutorial - Consolidated Statement of cash flows Question 1 Drafted consolidated statement of financial position for A Group as at 31 December: Year 1 Year 0 $'000 $'000 $'000 $'000 ASSETS Non-current assets Machinery at net book value Goodwi
The Open University - ACT - 407
B407F Week 11 Tutorial solution - Consolidated Statement of cash flows Question 1 A Group Consolidated Statement of Cash Flows for the year ended 31 December Year 1 $'000 Cash flows from operating activities Receipts from customers Payments to suppliers P
The Open University - ACT - 407
B407F Week 11 Tutorial solution - Consolidated Statement of cash flows Question 1 A Group Consolidated Statement of Cash Flows for the year ended 31 December Year 1 $'000 Cash flows from operating activities Receipts from customers Payments to suppliers P