ACCAP2考試復(fù)習(xí)資料

1、本文檔為精品文檔，如對(duì)你有幫助請(qǐng)下載支持，如有問題請(qǐng)及時(shí)溝通，謝謝支持!Part one Group Accounts1. Basic knowledge for group accountingMajor workingsW1 group structureSubsidiary IAS 27 Acquisition method “control ”Associate IAS 28 Equity method“significant influence ”Joint Venture IAS 31 Proportion or Equity method“joint control ”W 2 F

2、V of net assets of the subsidiaryDOADOCMovement(postacquisition)OSCxxReservesxxxFairvalueadjustments於火*Additional depreciation（多（多URP (S to H)(5(5Policy AdjustmentsTotalabc*sometimes the question will state this figure in which case the fair value adjustment will become the balancing figure*only rel

3、evant to include this here if the asset subject to the fair value adjustment remains at the reporting date i.e. it will not be relevant if it relates to inventory.W3 goodwill calculationThere are two methods in which goodwill may be calculated following the update to IFRS 3 (1) Partial goodwill (old

4、 method)Cost of investmentxLess: S% FV of NA at DOA (S% aW2)e)Goodwill on DOAXLess: impairment to date口）Goodwill on DOCX(2) Full goodwill (new method)Cost of investmentxFair value of NCI at DOAxFV of NA at DOA W2(a)Goodwill on DOAxLess: impairment to dateL2)Goodwill on DOCxOr, this can be presented

5、by:Cost of investmentxLess: S% FV of NA at DOAG)Goodwill on DOA (P ' s share)XFair value of NCI at DOAXNCI share of FV of NA at DOA(J)Goodwill on DOA (NCI share)XTotal goodwillXIFRS 3 requires that goodwill be subject to an impairment review. The subsidiary is regarded as the cash -generating un

6、it.Net assets of the subsidiary at the balance sheet datexPlus the unimpaired goodwill (gross up)_xCarrying valueXRecoverable amountXImpairment loss (total)XCost of investment Cash Deferred cash -PV and finance cost Share for share -MV Financial instruments -MV Contingent consideration -FV at the DO

7、A with adjustment for subsequent changes.a) If the change is due to additional information obtained after the acquisition date that affects the facts or circumstances as they existed at DOA, this is treated as ameasuremepferiod adjustment a nd the cost of investment and goodwill are remeasured.b) If

8、 changes due to events after the acquisition dateContingent consideration classified as equity shall not be remeasured, and its subsequent settlement shall be accounted for within equity.Contingent consideration classified as an asset or a liability that :Is a financial instrument and is within the

9、scope of IAS 39shall be measured at fair value, with any resulting gain or loss recognized either in profit or loss, or in other comprehensive income.Is not within the scope of IAS 39 shall be accounted for in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets, or other

10、 IFRSs as appropriate. Issue cost should be deducted from proceeds of issue. (i.e. share premium) not included in the cost of the acquisition. Professional fees and similar incremental costsexpense in the I/SW 4 Non-controlling interest(1) Old methodNCI % of FV of NA at DOC NCI% b W2(2) New methodFV

11、 of net assets of S at DOC (16 %) bxNCI share of goodwillxNCI share of impairment loss(J)xTotal non-controlling interestXNCI in income statementNCI% X (PAT -URP -DEPR)W 5 consolidated reserves (RE + other) calculationThe group reserves comprises as follows:1Parent companyxAdjustment, corrections (if

12、 any) e.g. URP where the parent is the seller or transactions the parent company has not yet recordedM( X2Less cumulative goodwill impairment losses (P share)(53Plus the group share of the (adjusted) post acquisition profits of the subsidiary and associatexTotalxBrief recap on accounting for associa

13、tesSignificant influence 20% -50% Board representationAssociates are equity accounted for in the group accounts.Group balance sheet-extractInvestment in associateA% of net assets (as adjusted for any depreciation and URP)xPlus the goodwill not yet written offxXGroup income statement -extractIncome f

14、rom associate undertakingsA% of the profit after tax (as adjusted for any depreciation and URP)XLess goodwill impairment loss(5XBalances, transactions between the associateand the group companies are not eliminated.URP is eliminated to the extent of group share.IAS 31 Interest in joint venturesJoint

15、 venture: a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control.Jointly controlled operations Each venture uses its own assets,incurs its own expensesand liabilities, and raises its own finance. IAS 31 requires that the venture should r

16、ecognise in its financial statements the assets that it controls, the liabilities that it incurs, the expensesthat it incurs, and its share of the income from the sale of goods or services by the joint venture.Jointly controlled assets Jointly controlled assets involve the joint control, and often t

17、he joint ownership, of assets dedicated to the joint venture. Each venture may take a share of the output from the assets and each bears a share of the expenses incurred. IAS 31 requires that the venture should recognise in its financial statements it share of the joint assets, any liabilities incur

18、red, income and expenses in the joint venture.Jointly controlled entities A jointly controlled entity is a corporation, partnership, or other entity in which two or more venturers have an interest, under a contractual arrangement that establishesjoint control over the entity. Each venture usually co

19、ntributes cash or other resources to the jointly controlled entity. Those contributions are included in the accounting records of the venture and recognised in the venturer ' s financial statements as an investment in the jointly controlled entity. IAS 31 allows two treatments of accounting for

20、an investment in jointly controlled entities -except as noted below:Method 1: proportionate consolidationUnder proportionate consolidation, the balance sheet of the venture includes its share of the assets and its share of the liabilities. The income statement of the venture includes its share of th

21、e income and expenses of the jointly controlled entity.Method 2: equity method of accountingProcedures for applying the equity method are the same as those described in IAS 28 investments in associates.Transactions between a venture and a joint ventureBalances, transactions between the JV and the gr

22、oup companies are not eliminated. URP is eliminated to the extent of group share.2. Complex group structuresA vertical groupA60%Br 70%CIn this illustration: A controls B and B controls C. As A controls B, it also controls B' s holdings in other companies. Hence, B and C are subsidiaries of A as

23、they are controlled by A.Company C is often called a sub-subsidiary.In a vertical group, use the group structure to determine the status of investments., The key is to identify control relationships The parent controls its subsidiaries holdings in other companies but does not control associate holdi

24、ngs.The date of acquisition by A is the date on which A gains control. If B already held C, treat B and C as being acquired on the same day.The group structure is vital -always identify this first and determine the status of investment.Also look carefully at dates to identify when the parent obtaine

25、d control.Effective group interestUsing the earlier group structure: A owns 60% if B and B owns 70% of C So A has an effective group interest in C of 60%*70% = 42% NCI own 58% of CMixed groupThe group is structure in manner where both the ultimate parent and a subsidiary have an interest on another

26、entity.For exampleH60%S30%T30%T is a subsidiary of H controls 30% directly and 30% indirectly via its interest in S. thus 60%is controlled. Consolidation is performed in a single stage using the consolidation percentages.S group share60%Minority share40%T group shareDirect30%Indirect 60%of 30% 18%48

27、%Minority share52%Step acquisitiona. control is achieved through two or more transactionsThe principles to be applied are: A business combination occurs only in respect of the transaction that gives one entity control of anther The identifiable net assets of the acquire are remeasured to their fair

28、value on the date of acquisition, Non-controlling interests are measuredon the date of acquisition under one of the two options permitted by IFRS 3Goodwill is measured as:Consideration transferred to obtain controlPlusAmount of non-controlling interest (using either option)PlusFair value of previous

29、ly-held equity interestLessFair value of the identifiable net assets of the acquireb. transactions between parent and non-controlling interestsOnce control has been achieved, further transactions whereby the parent entity acquires further equity interests from non-controlling interests, or disposes

30、of equity interests but without losing control, are accounted for as equity transactions (i.e. transactions with owners in their capacity as owners) it follows that:, The carrying amount of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests

31、in the subsidiary; Any difference between the amount by which the non-controlling interests is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent and; There is no consequential adjustment to the carrying amoun

32、t of goodwill, and no gain or loss is recognised in profit or loss.3. Disposala. loss of controlIAS 27 details the adjustments made when a parent losses control of a subsidiary, based on the date when control is lost: Derecognise the carrying amount of assets (including goodwill), liabilities and no

33、ncontrolling interests; Recognise the fair value of consideration received; Recognise any distribution of shares to owners; Recognise the fair value of any residual interest; Reclassify to profit or loss any amounts (i.e. the entire amount, not a proportion) relating to the subsidiary assets and lia

34、bilities previously recognised in other comprehensive income as if the assets and liabilities had been disposed of directly; and, Recognise any resulting difference as a gain or loss in profit or loss attributable to the parentb. Transactions between parent and NCISame principle as step acquisition

35、(equity transaction)c. Full disposalCalculate gain or loss by comparing FV of consideration received, and FV of NA at date of disposal plus unimpaired goodwill4. Foreign currencyIndividual company stageFunctional and presentational currencies, The functional currency is the currency of the primary e

36、conomic environment where the entity operates, in many cases this will be the local currency.An entity should consider the following factors in determining its functional currency:, The currency than mainly influences sales prices for goods and services The currency of the country whose competitive

37、forces and regulations mainly determine the sales price of goods and services The currency that mainly influences labour, material and other costs of providing goods and services.The presentation currency is the currency in which the entity presents its financial statements and this can be different

38、 from the functional currency, particularly if the entity in question is a foreign owned subsidiary. It may have to present its financial statements in the currency of the parent company. Even though that is different from their every day trading currency.Individual transactions in a foreign currenc

39、yAt transaction date: At the spot exchange rate on the date the transaction occurred; or Using an average rate over a period of time providing the exchange rate has not fluctuated significantly.At subsequent balance sheet dates: Foreign currency monetary items (debtors, creditors, cash, loans) must

40、be translated using the closing rate., Foreign currency non-monetary items (fixed assets, investments, stock) are not retranslated Exchange differences are recognized in income.Group stageWhere there is an overseas subsidiary that has a functional currency which is a local currency, prior to consoli

41、dation it will need to be translated into using the closing rate method.Closing rate method The balance sheet of the overseas entity is translated using the closing rate. The income statement items are translated at the average rate for the period.Exchange differences in the group accountsWith the c

42、losing rate method the group percentage of the exchange difference is dealt with in reserves.6. Cash Flow statementDetails see bookPart two summary of IAS and IFRS1. IAS 10 events after the balance sheet datePost balance sheetevents: an event which occurs after the year end but before the FS are app

43、roved. If it gives the new evidence on condition which existed at the year end, then adjusting PBSE -apply relevant accounting treatment. If it gives new evidence on condition which did not exist at the year end, but impacts going concern assumption, then adjust. If it does not impact the going conc

44、ern, then disclose in nature and estimate of financial effect.2. IAS 37 provisions, contingent liabilities and contingent assetsProvisions: only provide if obligation legal or constructive; probable transfer of economic benefit resulting from a past event; can be reliably measuredContingent liabilit

45、y: potential liability, assess likelihood of liability, remote -ignore, possible -disclose, probable dsclose/provideContingent asset: potential asset, assess likelihood of asset, remo tegnore, possible -ignore, probable -discloseProvision: A liability of uncertain timing or amountMeasurement of prov

46、isionsBest estimate Chis means: Provisions for one-off events (restructuring, environmental clean-up, settlement of a lawsuit) are measured at the most likely amount Provisions for large populations of events (warranties, customer refunds) are measured at a probability-weighted expected value.Both m

47、easurements are at discounted present value using a pre-tax discount rate that reflects the current market assessmentsof the time value of money and the risks specific to the liability.Remeasurement They should be reviewed at each balance sheet date and adjusted to reflect the current best estimate

48、If it is no longer probable that an outflow of resources will be required to settle the obligation, the provision should be reversed.RestructuringsRestructuring provisions should be accrued as follows: Sale of operation: accrue provision only after a binding sale agreement Closure or reorganisation:

49、 accrue only after a detailed formal plan is adopted and announced publicly. A board decision is not enough. Future operating losses: provisions should not be recognised for future operating losses, even in a restructuring Restructuring provision on acquisition (merger): accrue provision for termina

50、ting employees, closing facilities, and eliminating product lines only if announced at acquisition and, then only if a detailed formal plan is adopted 3 months after acquisition.Restructuring provisions should include only direct expenditures caused by the restructuring, not costs that associated wi

51、th the ongoing activities of the enterprise.Onerous contractsThe least net cost should be recognised as a provision. The least net cost is lower of the cost of fulfilling the contract or of terminating it and suffering any penalty payments.Debit entryWhen a provision (liability) is recognised, the d

52、ebit entry for a provision is not always an expense. Sometimes the provision may form part of the cost of the asset. Examples: obligation for environmental cleanup when a new mine is opened or an offshore oil rig is installed.Contingent liabilitiesIt requires that enterprises should not recognise co

53、ntigent liabilities - but should disclose them, unless the possibility of an outflow of economic resources is remote.Contingent assetsContingent assetsshould not be recognised -but should be disclosed where an inflow of economic benefits is probable.Non-current assets3. IAS 16 Property, plant and eq

54、uipment Recognition Meet definition of asset Owner occupied asset with physical existenceMajor inspection or overhaul costsThey can be treated as a separate component of the asset, they will be depreciated over the period up until the next overhaul date Initial measurementThey should be initially re

55、corded at cost. Cost includes all costs necessary to bring the asset to working condition for its intended use.Measurement subsequent to initial recognitionIAS 16 permits two accounting models: , Cost model Revaluation modelThe revaluation model, Upwards -revaluation reserves unless reverses previou

56、s decrease Downwards -income statements unless reverses previous increase May transfer differences between new and old depreciation from RR to RE On disposal, transfer remaining balance of RR to RE. The transfer to retained earnings should not be made through the income statement.4. IAS 36 impairmen

57、t of assetsImpairment. An asset is impaired when its carrying amount exceeds its recoverable amount.Recoverable amount.The higher of an asset ' s fair value less costs to sell (sometimes called net selling price) and its value in use.Value in use. The discounted present value of estimated future cash flows expected to arise from the use of the asset.Asset are tested for impairment annually, An inta