(a) Identify where exchange differences are recorded in the financial statements under the closing rate and temporal...
Question:
(a) Identify where exchange differences are recorded in the financial statements under the closing rate and temporal methods for translating the financial statements of foreign operations. Discuss the reasons for the different treatments of exchange differences between the closing rate and the temporal methods.
Your answer to this part of the question should not be more than 150 words.
(b) Compare and contrast the treatment of tangible non-current assets with acquired goodwill and the impact of the different treatments on the financial statements.
Your answer to this part of the question should not be more than 150 words
(c) H acquires 80% of the ordinary shares in S in exchange for 750 shares in H, each worth £2.00. The net assets of S at acquisition are £1,200. The fair value of the Non-Controlling Interest (NCI) is £325.
Required
Calculate the goodwill and the Non-Controlling Interest (NCI) using methods 1 and 2 for dealing with Non-Controlling Interest (NCI).
Compare and contrast finance and operating leases and the impact that this makes on financial statements.
Your answer to this part of the question should not be more than 150 words.
Applying International Financial Reporting Standards
ISBN: 978-0730302124
3rd edition
Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise