首页 | 学习中心 | 注册 登录
返回列表 发帖
zbird2134

Rank: 2

UID
223368 
帖子
251 
主题
45 
注册时间
2011-7-11 
最后登录
2014-7-21 
1# 跳转到 » 倒序看帖
打印
tT
发表于 2011-7-11 19:37 | 只看该作者

Inter-Corp Investments Question

2010, companies, declared, company
You own 50% of company X which is deemed to be a significant influence. Your companies NI is 75M. Company X's NI is 68M and declared 22M in dividends. IFRS rules apply.


What is your company's NI?

a) 75M
b) 98M
c) 109M
d) 143M



Edited 1 time(s). Last edit at Friday, May 7, 2010 at 12:06PM by TreasExmnr.
收藏 分享

profil

Rank: 2

UID
223393 
帖子
262 
主题
7 
注册时间
2011-7-11 
最后登录
2014-7-8 
2#
发表于 2011-7-11 19:37 | 只看该作者
equity method applies.

$75 + $68(.5) = 109

dividends are reflected in balance sheet account

TOP

jacksparrow

Rank: 2

UID
223418 
帖子
305 
主题
8 
注册时间
2011-7-11 
最后登录
2014-8-2 
3#
发表于 2011-7-11 19:37 | 只看该作者
I was thinking the answer was (b) because dividends are treated as a return on your investment. The book answer is (c). Am I just confusing NI with change in the balance sheet account?

TOP

Pegasus2008

Rank: 2

UID
217794 
帖子
294 
主题
142 
注册时间
2011-5-24 
最后登录
2012-9-12 
4#
发表于 2011-7-11 19:37 | 只看该作者
It must be 109.

50% = joint control = proportionate consolidation OR equity method under IFRS, but proportionate consolidate is preferred.

Doesnt really matter, because either way gives you the same net income

TOP

jarobi04

Rank: 2

UID
223400 
帖子
317 
主题
11 
注册时间
2011-7-11 
最后登录
2014-8-2 
5#
发表于 2011-7-11 19:37 | 只看该作者
it say significant influence .. so method used will be equity method only...
in that case we would have 109 the correct answer..



Edited 1 time(s). Last edit at Friday, May 7, 2010 at 12:56PM by YAhmed.

TOP

benbenxiong

Rank: 2

UID
217993 
帖子
226 
主题
109 
注册时间
2011-5-25 
最后登录
2012-9-12 
6#
发表于 2011-7-11 19:37 | 只看该作者
soddy1979 Wrote:
-------------------------------------------------------
> I'm going to say 143, 50% is joint control which
> equals consolidation under US GAAP.
>
> Although it could be 109 under IFRS.


keep in mind, under US GAAP, 50% = joint control = equity method under US GAAP. Consolidation would be >50%

TOP

MiniMe7

Rank: 2

UID
223430 
帖子
352 
主题
10 
注册时间
2011-7-11 
最后登录
2014-8-7 
7#
发表于 2011-7-11 19:37 | 只看该作者
C - 109

But also remember not to get too bogged down on the actual percentage of ownership (i.e. 50%, etc.). The book stresses its the companies INFLUENCE not necessarilly the percentage of ownership that determines the accounting method to be used.

Its possible to have less than 50% ownership and still be required to use consolidation

TOP

ninja1024

Rank: 2

UID
223444 
帖子
358 
主题
13 
注册时间
2011-7-11 
最后登录
2014-8-6 
8#
发表于 2011-7-11 19:37 | 只看该作者
right, % ownership is a GUIDELINE, actual INFLUENCE VS CONTROL dictates what to do.

So if i'm at say 15% ownership, but i have board representation and have influence, i'd still do equity method...

TOP

返回列表