Beruflich Dokumente
Kultur Dokumente
Edition
We apologize for the omissions and errors. Please make the following
amendments. We appreciate your feedback and comments for other
improvements. Please email the co-authors pearltan@smu.edu.sg or
cylim@smu.edu.sg for feedback or comments.
Corrigendum: Problem 3.4 (1)
Journal entry to record the purchase of net assets of S Co by P Co in its separate
financial statements on 1 January 20x1: Goodwill should be $248,000 and not
$268,000.
(1) Journal entry to record the purchase of net assets of S Co by P Co in
its separate
financial statements on 1 January 20x1
Dr Intangible asset
Dr Fixed assets
Dr Inventory
Dr Accounts receivable
Dr Cash
Dr Goodwill
Cr Accounts payable
30,000
350,000
60,000
90,000
20,000
248,000
80,000
18,000
700,000
798,000
20%*(470000380000)
Page 101
Repeat line to be deleted: For example the impairment loss on an acquirees
intangible asset arising from technological changes after acquisition date is not a
measurement period adjustment.
Problem 4.1
Please include the following under Additional Information:
(i)
S Co earned annual profit after tax of $2,000,000 for the year ended 30
June 20x2 and 30 June 20x3. There were no dividends or other changes
in equity during the two years. There was no change in the fair value of
investment property as at 30 June 20x3.
28 January 2015
$2,500
3,000
$ 500
(not 2,500)
31 Dec 20x2 Dr Opening retained earnings10,000 (not
1,000,000)
Cr Fixed
assets..10,000 (not 1,000,000)
1,486
1,486
Dr Unamortized premium
2,514
2,514
Value of option
at end of Year 1
PV
value
(PVu)
$11
Start
(Now)
$10
28 January 2015
$1
Expected
$1/(1+0.02) value
of
option=
PVux0.8
Pu = 0.2
of option
$9
$0
Share price decreases
by 10% at end of Year 1
(PVd)
28 January 2015
$0
Value of option
at end of Year 1
+
PVdx0.2
PV
value