Flashcards in 3 Deck (20)
Provision of free services from parent to sub is...
a related party transaction
A change in depreciation method is a...
change in accounting estimate
Accounting policy change
retrospective change, impacts opening balances and PY numbers
Accounting estimate change
Prospectively, depn the CA at the date by the new method
What is the purpose of highlighting RPT?
1) increases transparency
2) draws attention to performance influenced by existence/transactions w/ related parties
1) not amortised but annual imp review
2) not changed after acqn if change in contingent consid occurs
Goodwill, UK GAAP
1) amortised over useful life (max 10yrs)
2) if probable and reliably measured change in contin consid, recalc using new FV
SOCIE: b/f NCI
NA at acqn
+ post acqn NA
+ share of imp (if FV)
How does addition of a sub impact SOCIE?
Add figure in NCI col only
Cashflow: Operating activities also includes...
~ loss on disposal (add back)
~ scrapped equipment (add back)
~ finance cost (add back)
Cashflow: Financing activities, payment of lease liability
Payment - interest
How are deferred cash and shares treated in goodwill calc?
Shares: use value at acqn
Cash: recog provision + unwind
ability to pay div depends on distributable profit: accumulated realised profit less accumulated realised losses
Distributable reserves: Public Co restrictions
~ cannot pay div if net assets below total share capital and distributable reserved
~ preserves credit buffer
~ that are directly attributable to acqn, construct, product of qualifying asset are capitalised
~ capitalisation starts when expenditure is incurred
Qualifying asset (borrowing costs)
substantial time to get ready for intended use
Foreign exchange translation
~ initial recog at delivery (R+R transferred)
~ recorded in functional currency
~ retranslation gain recog in P/L
If there is no reval surp left, recog fall in value as...
an expense in the P/L
Assets are held at...
their recoverable amount, higher of:
a) value in use