p2 - ACCA PAPER

2201 Words Apr 18th, 2014 9 Pages
Corporate Reporting
June 2011

Time allowed

Reading time: 15 minutes

Writing time: 3 hours

This paper is divided into two sections

Section A

This question is compulsory and MUST be answered

Section B

TWO questions ONLY to be answered

Do not open this paper until instructed by the supervisor
This question paper must not be removed from the examination hall Kaplan Publishing/Kaplan Financial

Paper P2 (INT & UK)

ACCA FINAL ASSESSMENT

ACCA P2 (INT & UK) CORPORATE REPORTING

© Kaplan Financial Limited, 2010
The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such. No reliance should be placed
…show more content…
Baron held an
80% interest in the subsidiary at the date of disposal.
The group required the subsidiary Piece to prepare an interim statement of financial position at the date of the disposal. The consolidated carrying values of the net assets at the date of disposal are set out below in the summarised statement of financial position at 1 September 20X1.
$m
Tangible non-current assets
Current assets
Inventories
Trade receivables
Cash

$m
310

60
50
130
___
240
___
550
___

Share capital
Retained earnings

100
320
___
420

Trade payables
Tax payable

105
25
___
130
___
550
___

(b)

The carrying amount relating to goodwill in the group accounts arising on the acquisition of Piece was $64 million at 1 December 20X0. The loss on sale of discontinued operations in the group accounts comprises:
$m
Sale proceeds
CV of Piece at disposal:
Net assets
Goodwill

Less: CV of NCI at disposal

375
420
64
___
484
(84)
___
(400)
___

Loss on disposal

KAPLAN PUBLISHING

(25)
___

5

ACCA P2 (INT & UK) CORPORATE REPORTING

The consideration for the sale of Piece was 200 million equity shares of $1 in Meal,
(the acquiring company) at a value of $300 million and $75 million in cash. During the year, the group recognised an impairment loss of $20m arising on other intangible assets. (c)

During the year, Baron had transferred several of

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