Part 2 of 4
Readings: Unit 3
Pauline Hung / B407F /Oct 18,2012
Activity 1: post-acquisition consolidation of partly-owned sub.
On 1 Jan 20x1, P acquired 80% share capital of S for $310 cash when the
retained profits of S was
Part I of 4
Readings: Unit 2
Pauline Hung / B407F /Oct 11,2012
Prepare consolidation adjustments and consolidation
Prepare a simple consolidated statement of financial
position for wholly-own
Principles of consolidation
Requirements of group accounts
Readings: Unit 2, pp. 24-53
Pauline Hung / B407F /Oct 4,2012
Definition of a group, parent and subsidiary
Identify and describe the concept of a group as
Readings: Unit 2, pp. 1-24
Pauline Hung / B407F /Sep 2012
Business combinations give rise to complex accounting &
reporting issues, so need to:
know the definition and forms of business combinati
HK Financial Reporting
General purpose financial statements
(referred to as financial statements)
are those intended to meet the needs of users
who are not in a position to require an entity to
B407F Week 5 Tutorial -Consolidated Financial Statements (1)
HKFRS 3 Business combinations permits a non-controlling interest at the date of
acquisition to be valued at net assets or fair value approach.
Explain the nature of non-controllin
B407F Week 4 Tutorial - Legal requirements of group accounts
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
B407F Week 3 Tutorial Business Combination
X Limited (X) issues ordinary shares to shareholders of Y Limited (Y) in exchange
for all of the outstanding ordinary shares of Y.
Ys shareholders will own 50.1% of the voting interests of the combined
B407F Week 2 Tutorial Discussion
Refer to page 60 - 61 and 63 of 2011 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
B407F Week 1 Tutorial Overview of the framework of accounting
and interim reporting
An airline places a non-cancellable order for a new airplane with one of the major
commercial aircraft manufacturers at a fixed price, delivery in 30 months, pa