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    Joint Arrangement Prob1 3

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    Vijoe Plancia

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    © All Rights Reserved
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    Joint Arrangement Prob1 3

    Uploaded by

    Vijoe Plancia
    4 views6 pages

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    4 views6 pages

    Joint Arrangement Prob1 3

    Uploaded by

    Vijoe Plancia

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 6

    CASH 300,000

    INVENTORY 100,000
    EQUIPMENT 50,000
    MACHINERY 150,000

    ACCOUNTS PAYABLE 100,000


    NOTES PAYABLE 80,000
    LOANS PAYABLE 120,000

    SALES REVENUE 300,000


    UNREALIZED GAIN - A -30,000 60%
    UNREALIZED GAIN - B -10,000 50%
    260,000

    A - 50,000 - 40%
    C 300,000
    B -20,000 - 50%

    A: 260k x 60% = 156,000


    A: 260k x 40% = 104,000
    60% 40%
    A B
    180,000 120,000
    80,000 20,000
    50,000
    90,000 60,000
    400,000 200,000

    60,000 40,000-
    48,000 32,000
    120,000
    108,000 32,000

    20,000 A
    10,000 B
    230,000 CUSTOMERS
    260,000
    XYZ 500,000 only disclose in notes

    60%
    ABC
    GIVEN SHARE
    BEGINNING BALANCE 1,000,000

    2024 LOSS - 2,500,000 1,500,000

    2025 INCOME + 1,200,000 720,000

    2025 DIVIDENDS - 200,000 120,000

    ENDING BALANCE
    P/L to be recognized

    1,000,000

    220,000

    120,000

    100,000
    60%
    A COMPANY

    Beginning Balance (initial recognition)

    2024 NET INCOME 150,000

    2024 DIVIDENDS 50,000

    Impairment Loss

    Ending Balance - LOWER (subsequent recognition)

    Recoverable Amount - HIGHER

    FV less Cost of Disposal 315,000

    Value in Use 300,000

    P/L

    50%
    A COMPANY
    Transaction Cost

    2024 Net Income 150,000

    2024 Dividends 50,000

    Impairment Loss

    FV CHANGE

    P/L
    COST METHOD EQUITY METHOD FV METHOD

    355,000 355,000 355,000

    75,000

    25,000
    405,000
    40,000 90,000 0

    315,000 315,000 350,000

    COST METHOD EQUITY METHOD FV METHOD


    X X

    X 75,000

    25,000 X 25,000

    -40,000 -90,000 X
    X
    X -5,000

    -15,000 -15,000 20,000

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