Lecture11_Revision课件

1、2Lecture 11Revision 3COMMONWEALTH OF AUSTRALIACOPYRIGHT REGULATIONS 1969WARNINGThis material has been copied and communicated to you by or on behalf of Curtin University of Technology pursuant to Part VA of the Copyright Act 1968 (the Act)The material in this communication may be subject to copyrigh

2、t under the Act. Any further copying or communication of this material by you may be the subject of copyright protection under the Act.Do not remove this notice4Share CapitalOn 30 June 2008 the equity of Wuhan Ltd was as follows:50,000 ordinary shares, issued at $1.00, fully paid100,000Options (15,0

3、00 50c)7,500Retained earnings100,000Each option entitles the holder to acquire 1 ordinary share at a price of $1.10 per share, exercisable by 31 March 2009. Any options not exercised by this date will lapse.Journalise the following transactions: 5Share Capital01 Oct 08A prospectus was issued offerin

4、g 60,000 ordinary shares at an issue price of $1.20 per share, payable 70c on application and 50c on a first and final call. The closing date for applications was 31 October 2008. The issue was underwritten at a commission of $1,500.31 OctApplications monies for 75,000 shares were received by this d

5、ate.02 NovThe directors allotted 60,000 shares with allotment monies due by 30 November 2008. In accordance with the constitution, surplus application monies were kept as an advance on future calls. The underwriting commission was paid.6Share Capital31/10/08Cash trust (75,000 x 70c) Dr52,500Appln -

6、OrdCr52,50002/11/08Appln Ord Dr52,500Share capital Ord (60,000 x 70c)Cr42,000Calls in advanceCr10,500CashDr52,500Cash trustCr52,500Share issue costsDr1,500CashCr1,5007Share Capital31 Jan. 09The first and final call was made, with monies due by 28 February 2009.28 Feb$28,500 call monies were received

7、 by this date.20 MarThe shares on which the call was unpaid were forfeited. The company is entitled to keep any balance arising from forfeiture of shares.31 Mar12,000 shares were allotted as a result of 12,000 options having been exercised. Unexercised options lapsed.8Share Capital31/01/09Call Ord (

8、60,000 x 50c) Dr30,000Share capital OrdCr30,000Calls in advance (15,000 x 0.70)Dr10,500Call OrdCr10,50028/02/09Cash (57,000 x 50c)Dr18,000Call OrdCr18,000($28,500 - $10,500 calls in advance)20/03/09Share capital Ord (3,000 x $1.20)Dr3,600Call Ord (3,000 x 50c)Cr1,500FSR* (3,000 x 70c)Cr2,100*Forfeit

9、ed Share Reserve9Share Capital31/03/09Cash (12,000 x $1.10) Dr13,200Share capital OrdCr13,200Options (15,000 x 50c) Dr7,500Share capital Ord (12,000 x 50c)Cr6,000Options reserve (3,000 x 50c)Cr1,50010IntangiblesAn intangible is an identifiable non-monetary asset without physical substance.Separately

10、 acquired intangibles are measured initially at cost.With intangibles acquired as part of a business combination, cost is measured by reference to fair value.Internally Generated Intangibles (IGIs) such as brands, publishing titles, customer lists are specifically excluded from recognition.11Intangi

11、bles When do internally generated assets qualify for recognition? Internally generated goodwill shall not be recognised as an asset (Para 49). The reason is that internally generated goodwill is not identifiable i.e. not separable & does not arise from legal/contractual rights and its cost cannot be

12、 reliably determined. Under AASB 138, recognition requires that identifiable intangible assets as well as goodwill must initially be measured at cost, not fair value. Goodwill can be recognised only when it is acquired as part of a business combination and measured in accordance with IFRS 3 Business

13、 Combinations. 12Business Combinations Acquisition Analysis:Cost of the combination= XNet fair value of identifiable assets &Liabilities acquired= YGoodwill= X - Y13Business CombinationsNet FV of identifiable assets and liabilities acquired:Accounts receivable$12 000Inventory 15 000Plant and equipme

14、nt100 000Accounts payable(11 000)116 000Cost of the business combination: Purchase considerationShares (20 000 x $2.70) 54 000Cash Debentures (10 000 x $1.05)10 500Shareholders (20 000 x $1.00)20 000 30 500Land 45 000Total purchase consideration 129 500 Directly attributable costs: Incidental costs*

15、 1 500 Cost of the business combination131 000Goodwill:($131 000 $116 000)$15 000*Under IFRS3(revised), direct attributable costs should be expensed as incurred and so the Goodwill would be ($129,500 $116,000) = $13,500 instead.14Asset Impairment Kursk Ltd has two divisions, X and Y. Each of these i

16、s regarded as a separate cash generating unit. At 31 December 2007, the carrying amount of the assets of the two divisions were:X DivisionY DivisionPlant $1 500$1 200Accumulated Depreciation(650) (375)Patent240-Inventory5475Receivables7582Goodwill2520 The receivables were regarded as collectable, wh

17、ile the inventorys fair value less costs to sell was equal to its carrying amount. The patent had a fair value less costs to sell of $220. Kursk Ltd undertook impairment testing at 31 December 2007 and determined the value in use of the two divisions to be:X DivisionY DivisionValue in Use $1,044 $99

18、015Asset ImpairmentKursk Ltd:X DivisionY DivisionPlant$850825Patent2400Inventory5475Receivables7582Goodwill25201 2441 002Value in use1 044990Impairment loss(200)(12)In relation to Y Division, write goodwill down by $12:Impairment Loss Dr12Accumulated Impairment Losses- GoodwillCr1216Asset Impairment

19、In relation to X Division, reduce goodwill by its full amount of $25 and allocate the remaining $175 of impairment loss to applicable assets:CarryingProportionAllocationNet CarryingAmountAmountPlant85085/109 x 175136714Patent24024/109 x 175392011 090175As the patent has a fair value less costs to se

20、ll of $220, only $20 of the impairment loss of $39 can be allocated to it, so the plant must be reduced by a further $19 to $695.17Asset ImpairmentAt 31 December 2005, the plant and patent are recorded as follows:Plant $1 500Accumulated depreciation and impairment losses 805 650 +136 +19Carrying Amo

21、unt 695Patent $240Accumulated impairment losses 20Carrying Amount 220Impairment Loss-Plant Dr155 =136 + 19Impairment Loss-Patent Dr20Impairment Loss-Goodwill Dr25Accumulated Impairment Losses- GoodwillCr25Accumulated Dep. & Impairment Losses- PlantCr155Accumulated Impairment Losses- Patent Cr 2018Co

22、nsolidationsA Ltd owns all the shares of B Ltd. The shares were acquired on 1 July 2006 by A Ltd at a cost of $60 000. At acquisition date, the capital of B Ltd consisted of 44 000 ordinary shares each fully paid at $1. There were retained earnings of $4 000. At acquisition date, all the identifiabl

23、e assets and liabilities of B Ltd were recorded at amounts equal to fair value except for:CarryingFairAmountValueInventory$12 000$15 000Machinery (cost $100 000)80 00082 000Land60 00070 000The land was sold on 1 June 2007 for $94 000. The machinery had a further five year life. The inventory was all

24、 sold by 31 December 2006. B Ltd has not recorded any goodwill at 1 July 2006. Goodwill has not been impaired. Prepare the consolidation worksheet journal entries at 30 June 2008. Tax rate is 30%. 19ConsolidationsA LTD B LTDAt 1 July 2006:Net fair value of identifiable assets and liabilitiesof B Ltd

25、= $44 000 + $4 000 (equity)+ $3 000 (1 30%) (inventory)+ $10 000 (1 30%) (land)+ $2 000 (1 30%) (machinery)= $58 500Cost of combination= $60 000Goodwill= $1 50020ConsolidationsBusiness combination valuation entries:30 June 2008Accumulated DepreciationDr20 000MachineryCr18 000Deferred Tax LiabilityCr

26、600Business Combination Valn ReserveCr1 400Depreciation ExpenseDr400Retained Earnings (1/7/07)Dr400Accumulated DepreciationCr800Deferred Tax LiabilityDr240Income Tax ExpenseCr120Retained Earnings (1/7/07)Cr120 GoodwillDr1500BCVRCr150021ConsolidationsPre-acquisition entries:At 1/7/06:Retained Earning

27、s (1/7/06)Dr4 000Share CapitalDr44 000Business Combination Val. Res.Dr12 000Shares in B LtdCr60 000At 30/6/08:Retained Earnings (1/7/07)*Dr13 100Share CapitalDr44 000Business Combination Val. Res.Dr2 900Shares in B LtdCr60 000* = $4000 + $2 100 (inventory) + $7 000 (land)22ConsolidationsAdditional i

28、nformation:Intragroup sales of inventory for the year ended 30 June 2008 from A Ltd to B Ltd of $14 000. At 30 June 2008, this intragroup transfer of inventory resulted in a profit of $200 to A Ltd. At 30 June 2008, none of this inventory had been sold by B Ltd to external parties.Intragroup machine

29、ry on hand at 30 June 2008:A Ltd: purchased from B Ltd on 1 July 2007 for $10 000 at a profit to B Ltd of $500. Depreciation rate is 10% per annum on cost.23ConsolidationsAdjusting entry for sale of inventory and profit in closing inventory:30 June 2008:Sales RevenueDr14 000Cost of SalesCr13 800Inve

30、ntoryCr200Deferred Tax AssetDr60Income Tax ExpenseCr6024ConsolidationsAdjusting entry for sale of machinery - current period: 30 June 2008Proceeds on Sale of MachineryDr10 000Carrying Amt of Machinery SoldCr9 500MachineryCr500Deferred Tax AssetDr150Income Tax ExpenseCr150Accumulated Dep. - MachineryDr50 Depreciation ExpenseCr50Income Tax ExpenseDr15 Deferred Tax AssetCr1525Financial InstrumentsClassificationFinancial A/L at FairValue through profit and lossAvailable-for-saleFinancial Assets Held-To-MaturityFinancial AssetsLoans and ReceivablesFair ValueAmortised CostIncome S