Notes of a Third year student studying Bachelors of Accounting at the University of the Free State. With this notes that i have compiled, i was able to proudly say that i received a distinction in Financial Accounting by using this notes. If you are struggling with Financial Accounting use this not...
Journals
Investment in associate
Debit Credit
NO "@ acquisition eliminate journal"
(RE @ beg - RE @
Investment in associate (SFP) Acq) * %
All based on
(RE @ beg - RE @
Retained earnings (SCE) Acq) * %
associates
info
Investment in associates (SFP) Profit after tax * %
Share in profit of associates (SPL) Profit after tax * % Will do 2 journals if RS @ beginning and current
Beginning - (RS @ beg - RS @ Acq)* %
RS * %
Current - (RS for current - Adjustment @ acq) * %
Investment in associate (SFP)
Revaluation surplus (OCI) RS * %
Based on
beginning &
Dividends (SPL) Div * %
current part of
Investment (SFP) Div * % analysis
Gain on investment
Debit Credit
Investment in associate (SFP) Gain Year of Only for gain
acquisition No goodwill journal -
Share in profit of associate (SPL) Gain
goodwill included in cost of
investment
Investment in associates (SFP) Gain Years after
Retained earnings (SCE) Gain acquisition
, All info of investor +/- % info from investment
Abridged Statement of changes in equity for the year ended
Revaluation
Retained earnings
surplus
Balance of investor @ beg +/- what
happened in journals
Balance at ……. (Beginning)
Balance ADD
Profit after tax
Only dividends
Dividends from investor
Balance at …… (End)
Exclude dividend income
All info of investor +/- % info from investment received from assoociate
Abridged Statement of profit or loss and other comprehensive - see journal
income for the year ended
Profit before profit from associate
Profit from associate
Follow
Profit before tax Balance
Journals
Income tax expense
Profit for the year
Other comprehensive income
Items that will not be reclassified to profit/ loss
Revaluation
Share of OCI of associate
Total comprehensive income attributable to
Investment as per SFP
Cost Amount paid by Investor
Retained Earnings RE as @ analysis + gain
Revaluation RS as @ analysis
Shared profit Profit - Dividends (as @ analysis)
Sum
, Investment in Associates & Joint ventures
NEW
Do NOT have control - but has Significant Influence
significant influence The power to participate in the financial and operating policy decisions of the
investee, but in not control or joint control of those policy
Determine 20%:
aggregate of the holdings in
# Presume significant influence if 20% or more of voting power, unless demonstrated otherwise (par 5)
that associate or JV by the
parent and its subsidiaries.
# Significant influence when: (par 27)
- Representation on board/ governing body
- Material transaction between the entity and its investee
- Interchange of managerial personnel
- provision of essential technical info
- Participation in decision making (par 6)
Indication of significant influence in question
Stated that the investor has the
State indicaters according to
Stated by question power to participate in fnancial and State % shareholdings
par 6
operating decisions of infestee
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Acc07. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R60,00. You're not tied to anything after your purchase.
