中级会计辅导课5.pptVIP

Final ExamKey points 1.Condolidated accounts -Consolidated income statement and balance sheet 2.Accounting for fixed assets: - Purpose and methods of depreciation, advantage and disadvantage of different methods. -Caculation of new depn expense after the change in useful life or revaluation of fixed asset Final ExamKey points 3.EPS calculation, -Advantage and disadvantage of EPS. -Weighted average no. of shares calculation 4.Impairment of fixed assets or goodwill: -Definition of impairment loss; -In what situation will a company carry out an impairment review and how -Allocation of impairment loss Example 1 Beijing plc owns 80% of the shares of Zhuhai plc. The purchase consideration was ￡450,000. The retained earnings of Zhuhai plc at the date of acquisition were ￡350,000. The summarised financial statements of the two companies for the year ended 31 December 2008 were as follows: Example 1 Additional information: During the year, Zhuhai had sold goods which it had bought for ￡200,000, to Beijing with a markup of 30%. At the end of the year 20% of these were unsold by Beijing by the year end. A review of group current accounts showed a receivables balance of ￡30,000 in Zhuhai’s accounts and a payables balance of ￡27,000 in Beijing’s accounts. This is due to cash in transit: Beijing had dispatched a cheque of ￡3,000 on 31 December 2008. The group policy is to capitalise goodwill without amortisation. There has been no impairment of goodwill, since the acquisition. Consolidated B/S 1. Goodwill calculation investment 450 Less Parent’s share of share capital and reserve at the date of acquisition 80%*(350+100) (360) Goodwill 90 2. Cash in transit: Beijing sent cheque to Zhuhai: ￡3K Zhuhai’s cash: + 3 Zhuhai’s Receivable: -3 Cancel ￡27K payable-receivable from