Tutorial Solution Week 11 - ACCY200 FINANCIAL ACCOUNTING...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCY200 FINANCIAL ACCOUNTING IIA SPRING 2009 WEEK 11 TUTORIAL SOLUTIONS: LEO Chapter 8 Review Question 1, 7; Case Study 1; Practice question 8.2, 8.8 Part B only, 8.13. REVIEW QUESTIONS 1. What is meant by a “business combination”? AASB 3 Appendix A: Business: “an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants” Business combination: A transaction or other event in which an acquirer obtains control of one or more businesses” Consider inputs, processes and outputs Only in a business combination can goodwill be present. 7. Explain the key steps in the acquisition method. AASB 3 para 5: 1. identify the acquirer 2. determine the acquisition date 3. recognise and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree 4. recognise and measure goodwill or a gain from a bargain purchase.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Case Study 1: Applying AASB 3 Issue 1: How to account for the original 30% investment in Bream Ltd - initially recorded at fair value plus transactions cost, based on para 43 of AASB 139 - subsequently accounted for under IAS 39 eg could be measured at fair value with changes in value included in profit or loss or changes recognised directly in equity. -
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/13/2010 for the course ACCY 201 taught by Professor Kevin during the Three '09 term at University of Wollongong, Australia.

Page1 / 6

Tutorial Solution Week 11 - ACCY200 FINANCIAL ACCOUNTING...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online