Technical Accounting
Goodwill Allocated to a Cash-Generating Unit That Includes a Foreign Subsidiary: How to Retranslate, Test, and Record the Impairment at Consolidation
When a group acquires a foreign subsidiary, goodwill must be retranslated at every closing rate, tested for impairment in the…
Losing Control of a Subsidiary: The Consolidation Accounting for Disposal Under IFRS 10
The group had owned 80% of DistributeCo for six years. DistributeCo’s revenue appeared in the consolidated income statement. Its assets…
Gaining Control in Stages: How to Account for a Step Acquisition Under IFRS 3
Three years ago, the group took a 30% stake in TechCo, a software business with strong growth potential. The investment…
Foreign Subsidiary Consolidation: Why Profit Changes on Translation and Where the Difference Goes
The group finance director of a UK consumer goods company received the monthly flash report from her German subsidiary. SalesCo…
Intragroup Restructuring: How to Account for Common Control Transactions When IFRS 3 Doesn’t Apply
David had been CFO of the retail group for four years when the board approved a restructuring. For commercial and…
When a Partly-Owned Subsidiary Has Accumulated Losses That Exceed Its Equity: How to Handle Negative NCI at Consolidation
Marcus had been finance director at the wellness group for two years when his management accountant flagged something unusual in…
Post-Acquisition Consolidation: The Fair Value Adjustments You Still Need to Make in Year Two — and Every Year After
Priya had been group controller for eight months when she inherited the consolidation working papers for TrainingCo, a subsidiary the…
Intercompany Loans in a Foreign Currency: Why the Exchange Difference Goes to P&L in One Entity and OCI in Another — and How to Eliminate Both at Consolidation
Claire had just finished the first draft of the group accounts when the external auditor flagged something in the UK…
AASB 136 Goodwill Impairment Testing: A Practical Guide for Australian Multi-Entity Groups
Sarah took over as group financial controller for a Melbourne-based healthcare group fourteen months ago. Shortly after she started, she…
AASB 128 Investments in Associates and Joint Ventures: A Practical Guide for Australian Multi-Entity Groups
Helena is the group financial controller for a Sydney-based hospitality group. Eighteen months ago, the group acquired a 35% stake…