‫مختصر المحاسبة المتقدمة‬

‫فريق سواعد الخير‬

‫‪Abdulbaqi Ahmed‬‬
‫‪Abdahmed09@gmail.com‬‬
 ‫االهداء‬
‫الي مجيع حماسبني وحماسبات يف الدفعة أربع وستون‬

‫‪1‬‬
 ‫فهرس املوضوعات‬

‫رقم الصفحة‬ ‫املوضوع‬

3-11 Consolidated statement of financial position(group)

12-13 Revenue IFRS15

14-19 Earnings per share IAS33

0 Intangible Assets IAS38

20-24 Foreign Currency IAS 21

0 Fair value IFRS13

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 Consolidated statement of financial position(group)

Learning objectives: -

➢ Prepare a consolidated statement of financial position for a

simple group (parent and one subsidiary)

➢ deal with non-controlling interests (at fair value or

proportionate share of net assets)

➢ describe and apply the required accounting treatment of

consolidated goodwill.

➢ account for impairment of goodwill.

➢ explain and account for the consolidation of other reserves

(e.g., share premium and revaluation surplus)

➢ account for the effects of intra-group trading in the statement

of financial position.

➢ explain why it is necessary to use fair values when preparing

consolidated financial statements.

➢ account for the effects of fair value adjustments.

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Basic principle.
The basic principle of a consolidated statement of financial
position is that it shows all assets and liabilities of the parent and
subsidiary.
Intra-group items are excluded, e.g., receivables and payables
shown in the consolidated statement of financial position only
include amounts owed from/to third parties.

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Method of preparing a consolidated statement of financial position

1. The investment in the subsidiary (S) shown in the parent’s

(P’s) statement of financial position is replaced by the net
assets of S.
2. The cost of the investment in S is effectively cancelled with
the ordinary share capital and reserves of the subsidiary,
leaving goodwill as a balance.

This produces a consolidated statement of financial position

showing:
• the net assets of the whole group (P + S)
• the share capital of the group which always equals the
share capital of P only and
• the retained earnings, comprising profits earned by the
group (i.e., all of P’ historical profits + post-acquisition
profits made by S)

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 Solution
(W1) Establish the group structure

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Goodwill

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EXAMPLE

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 Revenue IFRS15
Learning objectives
• discuss the issues relating to the recognition of revenue
• understand the 5-step approach with regards to the recognition of
revenue
• record revenue in relation to contracts satisfied at a point in time
• discuss how progress is recorded in relation to contracts satisfied
over time
• record revenue in relation to contracts satisfied over time
• record assets and liabilities relating to revenue from contracts with
customers.

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Example Baker

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 Earnings per share IAS33

Learning objectives.
➢ define basic earnings per share (EPS)

➢ calculate EPS with a bonus issue during the year

➢ calculate EPS with an issue at full market value during the year

➢ calculate EPS with a rights issue during the year

➢ explain the relevance of diluted EPS (DEPS)

➢ calculate DEPS involving convertible debt

➢ calculate DEPS involving share options (warrants)

➢ explain the importance of EPS as a stock market indicator

➢ explain why the trend in EPS may be a more accurate

indicator of performance than a company’s profit trend

➢ explain the limitations of EPS as a performance measure.

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Basic EPS
The basic EPS calculation is simply:

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This should be expressed as cents per share to 1 decimal place.

• Earnings: group profit after tax, less non-controlling interests (see

group chapters) and irredeemable preference share dividends.
• Shares: weighted average number of ordinary shares in issue during
the period.

Issue of shares at full market price.

Earnings should be apportioned over the weighted average equity
share capital (i.e., taking account of the date any new shares are issued
during the year).

Bonus issue.
A bonus issue (or capitalization issue or scrip issue):

➢ does not provide additional resources to the issuer

➢ means that the shareholder owns the same proportion of the

business before and after the issue.

In the calculation of EPS:

• in the current year, the bonus shares are deemed to have been issued
at the start of the year
• comparative figures are restated to allow for the proportional increase
in share capital caused by the bonus issue. Doing this treats the bonus
issue as if it had always been in existence.
• Note: If you have an issue of shares at full market price and a bonus
issue, you apply a bonus fraction from the start of the year up to the
date of the bonus issue.

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For example, if the bonus issue was 1 share
for every 5 owned, the bonus fraction would be 6/5 (as everyone who
had 5 shares now has 6).

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 Foreign Currency IAS 21
Learning objectives.

• define presentation and functional currencies

• record transactions that are in a foreign currency.

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Definitions.

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