CORPORATE ACCOUNTING

CORPORATE ACCOUNTING



CORPORATE ACCOUNTING

Part A

See attached excel file

Part B

IFRS 3 (revised), Business Combinations, will cause significant changes in the accounting for business combinations. IFRS 3 (revised) develop a model of the acquisition and in various operations, such combinations by contract alone and combinations of mutual institutions included in the standard. However, in order to control transactions and joint ventures not covered in the standard. IFRS 3 (revised) affects the first fiscal year beginning on or after 1 July 2009. Can be applied early, but only for a period on or after 30 June 2007. It is important to note that the retroactive application of the earlier acquisitions is not allowed. Some of the most important changes are the purchase price together. Review now also the fair value of all interests which the buyers can participate before the acquired companies. This includes participation in an associate or joint venture or shares of the acquired company. All previous game will "leave" as the acquisition of the company and a gain or loss is seen recorded at your disposal. if the buyer has already held an interest in the acquiree before the acquisition, requires the current system's participation again at fair value measured at the acquisition date, so that any movement of the profit and loss account and gains previously recorded in equity relating to the existing operation . If the value has increased participation, there is a profit in the profit and loss account (income statement) of the acquirer at the time of the merger be approved. A loss would only occur if the interest on a book value was greater than the proportion of the fair value of the company and received no deterioration in pre-recorded. This loss is expected to occur rarely. The requirements for the recognition of the quota unchanged. Contingent consideration is now required to be carried at fair value, although it's probably not going to pay to the date of acquisition. All subsequent changes in the light of the contingent liabilities are recognized in the profit and loss account, rather than against goodwill, as it is considered recognized a liability under IAS 32 / 39th An increase in the responsibility for the proper performance of the subsidiary is charged to the profit and loss account and under performance against targets in the reduction of the expected result and payments recorded as a gain in the income statement. These changes were previously accounted for against goodwill. The nature of the contingent consideration is important because it may require the definition of a liability or equity to fulfill. If the definition of the latter, then no new measurement in accordance with IAS 32 / 39 The new requirement that the contingent purchase price is fair and just, if it is subsequently re-measured by income and not assessed as a historical practice again by goodwill is likely to change the focus and attention to the opening of the fair value calculation and subsequent measurements again to ...