Investment in zalis limited

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Investment in zalis limited

  1. 1. HARPUNEET Yujia ZHANG 41940415Shenqiong SHAN 41843932 PERISHER LTD
  2. 2.  AASB 128  AASB 139 Relates to the  Relates to the investment in investment in financial associates assets  Applicable from 1st july Applicable from 1st july 2010 till date 2008 to 30th june 2010 ACQUISITION DISINVESTMENT PERISHER LTD
  3. 3. •Defines an • Recognition and associate measurement of •Significant financial assetsAASB influence AASB • Financial assets128 •Not a subsidary or jv interest 139 four categories • Financial •More than 20% liabilities two voting rights categories PERISHER LTD
  4. 4. Perisher considered to have significant influenceunder para 6, more than 20% voting rightInitial recognition under para 11 to be at costCarrying amount $3,00,000 PERISHER LTD
  5. 5. Para 22 relates to discontinuation of equitymethodRecognition in accordance with aasb 9 afterloss of significant influenceRetained interest measurement at fair value PERISHER LTD
  6. 6.  Recognition based on difference between ◦ Fair value of retained interest and proceeds from disposing part of interest and ◦ Carrying amount at the date equity method discontinued PERISHER LTD
  7. 7.  Fair value of retained interest and proceeds from disposal FAIR VALUE = $1,52,000 PROCEEDS = $1,68,000 TOTAL = $3,20,000 Carrying amount when equity method discontinued $3,00,000 Resultant profit is $20,000 PERISHER LTD
  8. 8.  1ST JULY 2010 ◦ AFS FINANCIAL ASSET $1,52,000 ◦ CASH $1,68,000  INVESTMENT IN ZALIS $3,00,000  GAIN ON SALE $20,000 PERISHER LTD
  9. 9.  Initial recognition AASB 9- 3.1.1 Classification AASB 9 – 4.1.1 Measurement AASB 9 – 5.1.1  FV 1ST JULY 2010 =$152000  FV 30TH JUNE 2011 =$180500  CHANGE IN VALUE =$28500 PERISHER LTD
  10. 10.  30TH JUNE 2011 AFS financial asset $28,500 AFS revaluation reserve $28,500 PERISHER LTD
  11. 11.  Profit and loss ◦ Gain on sale $20,000 ◦ Gain on revaluation $28,500 Balance sheet ◦ Cash $1,68,000 ◦ Investment in zalis $(3,00,000) ◦ Financial asset $1,80,500 ◦ Revaluation reserve $28,500 PERISHER LTD
  12. 12.  Significant influence lost ◦ Disinvestment in zalis ltd of 21% resulted in loss of significant influence on zalis ltd. ◦ Zalis ltd was recognised as an associate under aasb 128 ◦ Now it is recognised as a financial asset under provisions of aasb 128 and recognition under aasb 9 PERISHER LTD
  13. 13.  Available for sale financial asset ◦ Since the investment does not have a fixed maturity date and is not for short term investment purpose therefore it is classified as available for sale. PERISHER LTD

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