Summary PGDA Financial Accounting Summaries

CHANGE IN OWNERSHIP:
SUB → SUB BUY
→ NCI ↓
→ Sub ↑ NCI total x Change % / Total % vs Investment @ CP

→ Recognise difference in equity [Change in Ownership Reserve]
→ Debit reserve = (Loss) 
→ Credit reserve = Profit ☺

INV → SUB BUY
→ Gain control → Consolidate @ year end
→ Initial investment @ FV until date of change
→ Transfer fair value adjustments to retained earnings [If policy]
→ Reverse tax on fair value adjustment on investment

INV → ASSOCIATE BUY
→ Initial investment @ FV until date of change
→ Transfer FV adjustments to retained earning [If policy]
→ Reverse tax on FV adjustments
→ Equity account @ year end

SUB → SUB SELL
→ NCI ↑
→ Sub ↓
Proceeds vs NCI [At + Since]
→ Change in Ownership Reserve

SUB → INV SELL
L OSE CONTROL & ACQUIRE NORMAL INVESTMENT @ FV
→ Transfer P’s % of fair value reserve to retained earnings on behalf of S [if S had own investments]
→ CP new = FV of investment
→ Reverse FV adjustment in P’s separate books
% Remaining x [CP + Since + Bargain purchase - Goodwill impairments + FCTR goodwill]
% Before
IFRS 10 B98 VS fair value of remaining %
→ Group gain = Gain on Sale (Parent) – Remeasurement gain
Proceeds – Cost price [Parent]

→ Eliminate parent’s gain
→ Bring in group gain [IFRS 10 B98]
→ Disclose remeasurement gain separately if company policy [IFRS 12.19]

SUB → 0 SELL
L OSE CONTROL
→ Bring in profit for months that parent had control IFRS 10.98:
Assets & Liabilities
→ Transfer P’s % of fair value reserve to retained earnings on behalf of S NCI derecognise
= NAV
+ Consideration received
→ Eliminate parent’s gain - Remaining investment @ FV
→ Bring in group gain [IFRS 10 B98] = Group Gain