Page 236 - Microsoft Word - 00 IWB ACCA F7.docx

Chapter 19

1.4 Impact on standard CSFP workings

The standard workings will be used, but the addition of an associate will affect only
workings 1 and 5, and require the addition of a working 6.

(W1) Group Structure

Note that the Associate (A) is
P P’s % outside the single entity. The

Date of acquisition Associate is not treated as a
group entity, and there is no
cancellation of inter-company
trading or balances.
S
A

(W5) Consolidated reserves

Retained Other
earnings components
$m $m
100% P's reserves X X
P's % of S’s post-acquisition reserves (W2) X X
P's % of A’s post-acquisition reserves X X
Goodwill impairment (X) –
Impairment of investment in associate X –
PURP adjustment (if P or A was seller) (X) –
–––– ––––
Reserves at reporting date X X
–––– ––––

230