Podcast
Questions and Answers
What is the purpose of the non-controlling interest (NCI) working in consolidation?
What is the purpose of the non-controlling interest (NCI) working in consolidation?
- To evaluate the goodwill generated through the acquisition
- To calculate the parent entity's ownership percentage
- To account for cases where the parent entity owns less than 100% of the subsidiary (correct)
- To determine the ownership percentage of subsidiary being consolidated
Which component is included in the group retained earnings calculation?
Which component is included in the group retained earnings calculation?
- Positive goodwill from the transaction
- Parent's share of subsidiary's post-acquisition retained earnings (correct)
- Parent's share of subsidiary's pre-acquisition retained earnings
- Negative goodwill from the transaction
In the consolidated statement of financial position, what do 'other assets' include?
In the consolidated statement of financial position, what do 'other assets' include?
- Values from the parent's books only
- Values from P books and a €1,100 gain on bargain purchase
- Only values from the subsidiary's books
- Values from both P and S books along with €600 fair value adjustment (correct)
What percentage of share capital did P acquire in S on the 1st of January 2017?
What percentage of share capital did P acquire in S on the 1st of January 2017?
What approach does the group use to measure goodwill?
What approach does the group use to measure goodwill?
What was the fair value of the non-controlling interest at the date of acquisition?
What was the fair value of the non-controlling interest at the date of acquisition?
What was the total assets of company S as at 31st December 2017?
What was the total assets of company S as at 31st December 2017?
What was the markup percentage on goods sold by P to S for €1,800?
What was the markup percentage on goods sold by P to S for €1,800?
How much of the goods sold by P to S remained in inventory as at 31st December 2017?
How much of the goods sold by P to S remained in inventory as at 31st December 2017?
What is the net movement shown in the post-acquisition column?
What is the net movement shown in the post-acquisition column?
What amount was recognized as an additional depreciation charge for the year passed since the date of acquisition?
What amount was recognized as an additional depreciation charge for the year passed since the date of acquisition?
How much was the investment by the parent entity before considering the non-controlling interest (NCI) value?
How much was the investment by the parent entity before considering the non-controlling interest (NCI) value?
What method was adopted for calculating the non-controlling interest (NCI) value?
What method was adopted for calculating the non-controlling interest (NCI) value?
What is the 'goodwill on acquisition' balance after deducting the fair value of the subsidiary's net assets at the date of acquisition?
What is the 'goodwill on acquisition' balance after deducting the fair value of the subsidiary's net assets at the date of acquisition?
What is the percentage ownership of the non-controlling interest (NCI) in S's net assets at acquisition?
What is the percentage ownership of the non-controlling interest (NCI) in S's net assets at acquisition?
What happens when the present value of an obligation grows over time?
What happens when the present value of an obligation grows over time?
How is contingent consideration treated in the calculation of goodwill?
How is contingent consideration treated in the calculation of goodwill?
How is the fair value of contingent consideration computed?
How is the fair value of contingent consideration computed?
What effect does the unwinding of discount have on deferred payments?
What effect does the unwinding of discount have on deferred payments?
How are changes to accounting estimates for contingent consideration accounted for?
How are changes to accounting estimates for contingent consideration accounted for?
How does the growth in the carrying amount of deferred payment liability impact goodwill recognized upon acquisition?
How does the growth in the carrying amount of deferred payment liability impact goodwill recognized upon acquisition?
How are distributions received from an investee treated in the financial statements?
How are distributions received from an investee treated in the financial statements?
When does the equity method apply in accounting for investments?
When does the equity method apply in accounting for investments?
How is an 'associate' defined in accounting standards?
How is an 'associate' defined in accounting standards?
What happens to the use of the equity method if an investor ceases to have significant influence over an associate?
What happens to the use of the equity method if an investor ceases to have significant influence over an associate?
Where are investments in associates reported in consolidated financial statements?
Where are investments in associates reported in consolidated financial statements?
How is the carrying amount of an investment in an associate adjusted under the equity method?
How is the carrying amount of an investment in an associate adjusted under the equity method?
