POINTERS TO REVIEW (CHECK LIST)

INVESTMENT IN ASSOCIATE  Cash basis

 On account
 Equity method  Installment basis
 Excess of cost over carrying amount  Issuance of share capital
 Excess of fair value over cost  Issuance of bonds payable
 Investee with heavy losses  Exchange
 Investee with preference shares o With commercial substance
 Other changes in Equity
o No commercial substance
OTHER ACCOUNTING ISSUES o Trade in
 Donation
 Sale of inventory from associate to investor  Government grant
 Sale of depreciable asset  Construction
 Upstream
 Downstream LAND & BUILDING
 Discontinuance of equity method – change from
equity  Land Account
 Investment in associate achieved in stages o Cost chargeable to land
 Cost method to equity method  Building Account
 Fair Value method to equity method o Acquired by purchase
o Acquired by means of construction
DEBT SECURITIES  Land Improvements
 Bond investment MACHINERY
 Acquisition of Bond Investment
o Accrued interest on date of acquisition  Tools
o Acquisition on interest date  Equipment
o Acquisition between interest date  Returnable containers
 Sale of bonds prior to maturity  Capital & revenue expenditures
o Sale of bonds  Future economic benefit
o Bonds Outstanding method  Subsequent cost
 Premium o Additions
 Discount o Improvement or betterments
 Effective interest method o Replacements
o Discount o Repairs
o Premium o Rearrangement cost
o Serial bonds  Accounting for major replacement
o Bond investment – FVOCI  Accounting for major improvement
o Fair value option  Separate identification is:
o Market price bonds o Practicable
 Bond premium o Not practicable
 Bond discount

INVESTMENT PROPERTY

 Cost model
 Fair value model
 Cash surrender value

PROPERTY, PLANT & EQUIPMENT (PPE)