Cor pora te rep or ti n g

ACCA P2 I NT & UK : 
COR PORA TE REP OR TI N G
 
4
K A P LAN P UB LI S HI N G
 
Other marks 
PPE adjustments in (W2) 
2 
Control-to-control calculation (W6) 
1 
PURP calculation (W7) 
1 
Forex calculation (W8) 
2 
SARs calculation (W9) 
1 
Correct provision amount (W10) 
1 
Depreciation calculation (W11) 
1 
–––– 
35 
–––– 
Note: 
No marks are awarded for simply adding together the parent and the 
subsidiary. One mark is instead awarded for each adjustment (own figure 
rule applies). Marks for correct calculations are noted within the relevant 
workings. 
Workings 
(W1) Group structure 
 

Beth 
 

 
Full year: 80% 
30% 
Last day: 85% 
 
 
 
 
Lose 
Gain 
Where the acquirer already has an investment in the company and a further 
investment means that control is acquired then this is a step acquisition. The 
previously held investment is remeasured to fair value and the change in value 
reported in profit or loss.
The original investment in Lose of $40m now has a fair value of $70m, giving 
rise to a profit of $30m in profit or loss (W5). 
Once control is achieved, the purchase of the additional 5% holding in Lose is 
accounted for in equity (W6). 
Gain is an associate. It is accounted for using the equity method (W7). 

---

REV IS ION MO CK A ANSWERS 
K APLAN P UBLISH IN G