[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

is it b? i think when u change to cost from equity under ifrs is only prospective

[stoleway]

40000

When control is lost under ifrs…..

Proceeds

Fv of remaining investment

(Carrying amount)

= 40,000

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

For dsch9319 – i was getting 450,000 but its not even a choice on this MCQ so i am not sure what I am not doing right 🙁

[Anonymous]

*embarrassed*

[Anonymous]

the answer was 400000

[Anonymous]

u have a gain from the sale, and u also have a gain from revaluing the leftover equity to fv 150+250

[Anonymous]

Still not understanding

[Anonymous]

For my question the answer is :-

Under IFRS, when significant influence is lost, any retained investment is measured at fair value. The gain or loss on the disposal of the investment is calculated as follows:

Fair value of retained investment

$100,000

+

Proceeds from disposal of the investment

150,000

–

Carrying amount of the investment on the date significant influence is lost

(210,000)

=

Gain on disposal of the investment

40,000

[Anonymous]

IFRS points out applying equity method prospectively.

[Anonymous]

for my questions the answer is as follows :

u acquired 80% of 100000 shares for 1600000. so that means each share u acquired for $20 (1600000/80000).

you sold 50000 of that 80000 for 25 per shares so that 25-20*50000 for a gain of 250000

after that, u are elft with 30000 of the 80000 you originally had which u should now revalue up to per share value (fv) of 25 per share so its 30000* 5 which is 150000 so your total gain is

250000+150000=400000

[Anonymous]

Ugh, wasn't obvious at all

[Anonymous]

acquired 80% of 100000 shares – thats what I missed – Dammit!!

I read it as acquired 80% for 100000 shares.. 🙁

[Anonymous]

when u consolidate, what are some items that are not reported on the consolidated statesments for the subsidiary. im not asking for the j/e's i just want to know conceptually. like do dividends and ni of sub get eliminated? tia

[Anonymous]

I don't know if there is any chance for me to pass. Ifrs is a nightmare and my review doesn't get into details. And also I am obviously dumb

[stoleway]

@dsch9319

Look out for the following items when you consolidate.

Do not report any equity item that belongs to the subsidiary…eg, CS, PS, APIC and RE

A portion of Subsidiary dividend reduces NCI, and a portion of Sub Net income increase NCI.

Dividends that should have been distributed to the parent will be completely ignored, except the portion that belongs to NCI.

A portion of Sub Net income will be allocated prorata between parent and NCI(if there is one)

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Author]

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