Scribd Logo
Upload

Welcome to Scribd!

  • Points To Remember

    Uploaded by

    Akanksha singh
    5 views2 pages
    1. Professional fees cannot be capitalized as part of the cost of an investment. Excess depreciation is only taken to the reserves. 2. When the selling price and markup percentage are given, the cost is calculated as the selling price multiplied by 100 divided by the sum of 100 and the markup percentage. 3. Gains on investment are first added to the investment account and then also taken to equity share capital reserves. 4. Fair value adjustments to plant assets are taken to reserves. Depreciation on fair value adjustments is also taken to reserves.

    Original Description:

    ACCA important points

    Original Title

    points to remember

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1. Professional fees cannot be capitalized as part of the cost of an investment. Excess depreciation is only taken to the reserves. 2. When the selling price and markup percentage are given, the cost is calculated as the selling price multiplied by 100 divided by the sum of 100 and the markup percentage. 3. Gains on investment are first added to the investment account and then also taken to equity share capital reserves. 4. Fair value adjustments to plant assets are taken to reserves. Depreciation on fair value adjustments is also taken to reserves.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views2 pages

    Points To Remember

    Uploaded by

    Akanksha singh
    1. Professional fees cannot be capitalized as part of the cost of an investment. Excess depreciation is only taken to the reserves. 2. When the selling price and markup percentage are given, the cost is calculated as the selling price multiplied by 100 divided by the sum of 100 and the markup percentage. 3. Gains on investment are first added to the investment account and then also taken to equity share capital reserves. 4. Fair value adjustments to plant assets are taken to reserves. Depreciation on fair value adjustments is also taken to reserves.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Consolidation statement of Financial position

    1. Professional fee and any similar fee can’t be capitalized as a part of cost of investment.
    2. Excess dep. is taken only to WN2.
    3. Cost to XYZ means, selling price.
    4. When SP is given, and markup is given(25%), then calculated as, xxx*25/125.
    5. Gain on investment is firstly added in investment and then also taken to ESC and added there.
    6. Fair value adjustment to plant is taken to WN2.
    7. Fair value adjustment (increase in the value of asset) is taken to WN2 in DOA and DOR.
    8. Deprecation on fair value adjustment is taken to WN2 as –DOR and –post acquisition.
    9.

    Consolidation statement of P&L


    1. If mid-year acquisition is done then, change every value of the subsidiary company.
    2. Contingent liability affects WN2 in CSFP and is (-) from there.
    3. Unwound interest is taken to Finance cost.
    4. If gain/loss is given in the P&L under OCI, it is simply added with the parent’s gain/loss
    without considering the pre and post time period.
    5.
    Consolidation statement of P&L

    You might also like