Acca P2 Pass Card
ACCA P2 (International)
Course Overview
GROUP ACCOUNTING – BASIC GROUPS
Statement of financial position – standard workings
Group structure
Retained earnings
Net assets
Noncontrollin g interests
Goodwill
Statement of comprehensive income – standard workings
Group structure
Retained earnings b/fwd
Net assets at aq’n
Noncontrolling interests
Goodwill
Consol’n schedule
Accounting for associates
Group structure Share of retained earnings at each SOFP date
Not part of group for consolidation
Net assets at aq’n
Share of profit for the year in SOCI Share of net assets at SOFP date
Goodwill
Accounting for joint ventures
Jointly controlled operations
Jointly controlled entities
Jointly controlled assets
COMPLEX GROUPS
DISPOSALS AND GROUP REORGANISATIONS
Full disposal of subsidiary or associate
Partial disposal of subsidiary
Reasons for reorganisations
Seek listing on public exchange
Reverse acquisition
Disposal of subsidiary
Demerger
Divisionalisati on
GROUP ACCOUNTING FOREIGN CURRENCY
Foreign currency
Functional currency
Currency of the primary economic environment
Presentation currency
Currency in which financial statements are presented
Foreign currency – individual transactions
Principle – use rate ruling at transaction date
Gain/loss on retranslation to SOCI
May use average rate for SOCI transactions
Monetary items retranslated at SOFP date
Nonmonetary items left at historic rate
GROUP STATEMENT OF CASHFLOWS
Proforma statement of cash flows per IAS 7
$ Operating activities Profit before tax Add: interest payable Less: Income from associate Adjust for noncash items dealt with in arriving at operating profit: Add: depreciation Add: loss on impairment Add: loss on disposal of noncurrent assets Add: increase in provisions $ X X (x) Investing activities Payments to purchase NCA Receipts from NCA disposals Cash paid to
Course Overview
GROUP ACCOUNTING – BASIC GROUPS
Statement of financial position – standard workings
Group structure
Retained earnings
Net assets
Noncontrollin g interests
Goodwill
Statement of comprehensive income – standard workings
Group structure
Retained earnings b/fwd
Net assets at aq’n
Noncontrolling interests
Goodwill
Consol’n schedule
Accounting for associates
Group structure Share of retained earnings at each SOFP date
Not part of group for consolidation
Net assets at aq’n
Share of profit for the year in SOCI Share of net assets at SOFP date
Goodwill
Accounting for joint ventures
Jointly controlled operations
Jointly controlled entities
Jointly controlled assets
COMPLEX GROUPS
DISPOSALS AND GROUP REORGANISATIONS
Full disposal of subsidiary or associate
Partial disposal of subsidiary
Reasons for reorganisations
Seek listing on public exchange
Reverse acquisition
Disposal of subsidiary
Demerger
Divisionalisati on
GROUP ACCOUNTING FOREIGN CURRENCY
Foreign currency
Functional currency
Currency of the primary economic environment
Presentation currency
Currency in which financial statements are presented
Foreign currency – individual transactions
Principle – use rate ruling at transaction date
Gain/loss on retranslation to SOCI
May use average rate for SOCI transactions
Monetary items retranslated at SOFP date
Nonmonetary items left at historic rate
GROUP STATEMENT OF CASHFLOWS
Proforma statement of cash flows per IAS 7
$ Operating activities Profit before tax Add: interest payable Less: Income from associate Adjust for noncash items dealt with in arriving at operating profit: Add: depreciation Add: loss on impairment Add: loss on disposal of noncurrent assets Add: increase in provisions $ X X (x) Investing activities Payments to purchase NCA Receipts from NCA disposals Cash paid to