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  • Part 2 A - Investment To A Subsidiary

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    taniel.dhaver
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    The document summarizes transactions related to investments in associates and subsidiaries. It records the acquisition of additional interests in S Ltd on 01/01/2019 and 01/03/2019, increasing the total interest to 75%. It also records the acquisition of an additional interest in S Ltd on 30/04/2012, increasing the total interest to 65%. The fair value of previous interests, consideration paid, and resulting goodwill or discount on acquisition are provided. Accounting entries are shown for remeasuring investments to fair value and the group's share of associate profits.

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    Part 2 A - Investment to a subsidiary

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    The document summarizes transactions related to investments in associates and subsidiaries. It records the acquisition of additional interests in S Ltd on 01/01/2019 and 01/03/2019, increasing the total interest to 75%. It also records the acquisition of an additional interest in S Ltd on 30/04/2012, increasing the total interest to 65%. The fair value of previous interests, consideration paid, and resulting goodwill or discount on acquisition are provided. Accounting entries are shown for remeasuring investments to fair value and the group's share of associate profits.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    20 views5 pages

    Part 2 A - Investment To A Subsidiary

    Uploaded by

    taniel.dhaver
    The document summarizes transactions related to investments in associates and subsidiaries. It records the acquisition of additional interests in S Ltd on 01/01/2019 and 01/03/2019, increasing the total interest to 75%. It also records the acquisition of an additional interest in S Ltd on 30/04/2012, increasing the total interest to 65%. The fair value of previous interests, consideration paid, and resulting goodwill or discount on acquisition are provided. Accounting entries are shown for remeasuring investments to fair value and the group's share of associate profits.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 5

    01/01/2019

    01/03/2019

    75%

    270 000

    54 000 consideration paid for additional controlling intere


    216 000
    01/01/2017 40 000
    01/01/2019 50 000
    01/03/2019 54 000

    Dr. Investment in S Ltd (SFP) 10 000


    Cr. Mark-to-market reserve (SOCIE) 7 760 PY
    Cr. Deferred tax (SFP) 2 240
    10 000 x 80% x 28% = 2 240

    Dr. Investment in S Ltd (SFP) 4 000


    Cr. Mark-to-market reserve (SOCIE) 3 104 CY
    Cr. Deferred tax (SFP) 896
    4 000 x 80% x 28% = 896

    FV of previous interest 54 000


    Less: CA of the investment on acquisition date 54 000
    Equals: Remeasurement gain/ loss (P/L) 0
    P

    31/12/2019
    01/01/2017

    Consideration paid = R40 000


    Consideration paid = R216 000

    15 000 / 100 000 = 15% (simple investment) (IFRS 9)


    or additional controlling interest
    60 000 / 100 000 = 60%

    01/03/2019: 15% + 60% = 75%

    Consideration paid 216 000


    FV of previous interest 54 000
    Add: NCI 90 000
    Less: Net assets (100 000 + 248 000) = 348 000
    12 000
    01/01/2012

    30/04/2012

    65%

    R18 600

    R11 100 consideration paid for additional controlling int


    R7 500

    S Ltd - 31/12/2011

    Dr. Land (SFP) 1 289


    Cr. Revaluation surplus (SOCIE) 1 000
    Cr. Deferred tax (SFP) 289

    1 000 77.6 (100 - 22.4)


    x 100

    77.6x = R100 000


    x = R1 289

    30/04/2012
    FV of previous interest R11 100
    Less: CA of the investment on acquisition date (R10 800)
    Equals: Remeasurement gain/ loss (P/L) R 300

    J1
    Dr. Investment in Associate (SFP) 8 000
    Cr. Bank (SFP) 8 000

    J2
    Dr. Investment in Associate (SFP) 1 600
    Cr. Retained earnings (SOCIE) 1 600
    (R4 000 - R0) x 40% = R1 600

    J3
    Dr. Investment in Associate (SFP) 400
    Cr. Revaluation surplus (SOCIE) 400
    (R1 000 x 40%) = R400

    J4
    Dr. Investment in Associate (SFP) 800
    Cr. Share of profit of Associate (SFP) 800
    (R10 000 - R3 000 - R1 000) = R6 000 x 4/12 = R2 000 x 40% = R800

    CA of investment in Associate (SFP) R10 800 ??


    Share of profit of Associate (P/L) R 800
    P

    31/12/2012
    01/01/2011

    Consideration paid = R8 000


    Consideration paid = R7 500

    8 000 / 20 000 = 40% (associate) (IAS 28)


    or additional controlling interest
    5 000 / 20 000 = 25%

    30/04/2012: 40% + 25% = 65%

    Consideration paid 7 500


    FV of previous interest 11 100
    Add: NCI 9 450
    Less: Net assets (27 000)
    1 050

    Dr. Investment in Associate (SFP) 300


    Cr. Other income (P/L) 300

    Share capital 20 000


    Retained earnings 0
    20 000 8 000
    Goodwill 0
    Consideration paid 8 000

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