How to account for tag in consolidated financial statements

Assignment Help Financial Accounting
Reference no: EM132557160

Ash, a holding company, decided to sell its 100% owned subsidiary Tag prior to the year ended 31 Dec x5 and the sale is to take place after the financial statements are signed. The contract to sell was being prepared and it was expected that the sale will be finalized in Mar x6. The details of Tag's financial position, including its allocated goodwill are as follows (amount in Rm'mil):

Goodwill 50

Property, plant and equipment at cost 240

Property, plant and equipment at valuation 320

Inventories 100

Trade receivables 60

Trade payables (50)

Total 720

The fair value of Tag was RM600 mil, and the estimated selling cost is RM10 mil.

Required:

Question 1: Advise Ash as to how to account for Tag in the consolidated financial statements for the year ended 31 Dec x5.

Reference no: EM132557160

Questions Cloud

Cost assumptions to ensure project success : A fundamental topic for the success of a project is the management of scope. The original scope of a project has cost assumptions to ensure project success.
What is the fair value of the plan assets at december : At January 1, 2020, Van Gogh Corp.'s defined benefit pension plan, What is the fair value of the plan assets at December 31, 2020?
How much money do you need to invest in Stocks A : Required - If your goal is to create portfolio that has an expected return of 13.68%, how much money do you need to invest in Stocks A and B
Strategic management : Research Hershey's organizational chart and organizational structure. describing Hershey's organizational structure
How to account for tag in consolidated financial statements : How to account for Tag in the consolidated financial statements for the year ended 31 Dec x5. Ash, a holding company, decided to sell its 100% owned subsidiary
Describe depreciation : Superbowl commercial ads are an anticipated event every year. Define and describe depreciation? Name three methods of depreciation.
Discuss topic applying servant leadership in practice : Select a topic for your Topic 3 Executive Summary assignment. Post your idea and basic thoughts about the topic using the assignment details from Topic 3.
Calculate the amount to allocate to each partner : A. Fulton, J. Read and R. Moore are partners who earn an annual salary of $50 000, $40 000 and $20 000. Calculate the amount to allocate to each partner
What the insurance expense on the annual income statement : What will be the insurance expense on the annual income statement for the first year ended December 31

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd