intra group balance
Post on 27-Apr-2015
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Workings :
Step-1 (Group structure)
Investment in S = ___ % consolidate At acquisition date = _____________ At reporting date = _____________
Investment in A = ___ % equity account At acquisition date = _____________ At reporting date = _____________
Step-2 Net asset in S
At acquisition At reporting date date $ $ Share capital Share premium Retained earnings Fair value adjustment: (Increase value of asset in revaluation compared to book value): Asset ( Increase value at X X acquisition date) Asset ( Increase value in post-acquisition period) X Depreciation (On increase X Value in revaluation) Write off development expenditure ( Not recognize as an asset ) Write back amortization of development expenditure ( De recognition as an asset )
The current accounts of the two companies are reconciled at the year-end with S
owing P $75000. S = Receivable in P’s SOFP P = Payable in S’s SOFP Accounting treatment : Group B/S: Current asset: $ P- Receivables X Less: Intra-group balance (75000)
Add: S-Receivables __X__ __X__
Current liability: $ P- Payables X
S- Payables X Less: Intra-group balance _(75000)_ __X__ __X__
The current accounts of the two companies are reconciled at the year-end with P owing S $75000.P = Receivable in S’s SOFPS = Payable in P’s SOFP
Accounting treatment : Group B/S: Current asset: $ P- Receivables X S- Receivables X Less: Intra-group balance _(75000)_ __X__ __X__
Current liability: $ P- Payables X Less: Intra-group balance _(75000)_ X S- Payables __X__ __X__
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