{"entries":[{"key":"LX.IAS28.000001","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.DEFINITIONS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"ASSOCIATE_VS_SUBSIDIARY","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS28.000001","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-definitions"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"Orvane SA holds 28% of the voting rights of Lumen SA, has a seat on its board and takes part in its financial policy decisions, without controlling it or controlling it jointly with a partner (case facts). How is Lumen classified for Orvane?","es":""},"explanation":{"fr":"","en":"Rule to remember: significant influence, without control or joint control, makes the entity an associate accounted for by the equity method (IAS 28).","es":""},"common_error":{"fr":"","en":"Deducing the status from the percentage of voting rights alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Associate: the investment is accounted for by the equity method, Lumen not being controlled","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Subsidiary: Orvane must consolidate it, its holding exceeding a quarter of the voting rights","es":""},"correct":false,"feedback":{"fr":"","en":"Control is not measured by a quarter of the voting rights; it is absent here, so Lumen is not a subsidiary (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"Joint venture: the board seat reflects control shared with the other directors","es":""},"correct":false,"feedback":{"fr":"","en":"A board seat does not establish joint control; a joint venture rests on rights to the net assets (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"Financial instrument: a holding below half of the rights is outside IAS 28","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence can exist below half of the voting rights; with these facts, IAS 28 applies (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000002","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.DEFINITIONS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"EQUITY_METHOD_NOT_COST","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS28.000001","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-definitions"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"With the equity method, Dalmar SA keeps its 30% investment in Pavane SA at its original cost until the shares are sold.","es":""},"explanation":{"fr":"","en":"The equity method starts from cost, then adjusts the carrying amount for the investor's share in the investee (IAS 28).","es":""},"common_error":{"fr":"","en":"Confusing the equity method with measurement at cost.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000003","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.DEFINITIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"ENERGY","tested_point":"THREE_RELATIONSHIPS","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS28.000001","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"example"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"Classify each situation (case facts) by the relationship between the investor and the investee.","es":""},"explanation":{"fr":"","en":"Control: subsidiary. Significant influence without control: associate. Joint control with rights to net assets: joint venture (IAS 28).","es":""},"common_error":{"fr":"","en":"Placing every large shareholding among the subsidiaries.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Subsidiary","es":""}},{"id":"c2","text":{"fr":"","en":"Associate","es":""}},{"id":"c3","text":{"fr":"","en":"Joint venture","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Kerdan SA directs the relevant activities of Vorne SA and holds 70% of it.","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Telmar SA takes part in the policy decisions of Pelmar SA through a board seat, without controlling it.","es":""},"category":"c2"},{"id":"i3","text":{"fr":"","en":"Two companies decide together on the future of Sarel SA under a unanimous contractual agreement and have rights to its net assets.","es":""},"category":"c3"},{"id":"i4","text":{"fr":"","en":"Zelda SA directs the policy of Hélios SA, whose managers it appoints.","es":""},"category":"c1"},{"id":"i5","text":{"fr":"","en":"Istrel SA exchanges managerial personnel with Dalmar SA, which it does not control.","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"Valtor SA and a partner share control of Kelda SA by agreement, with rights to its net assets.","es":""},"category":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000004","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.DEFINITIONS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"TELECOM","tested_point":"TERMS_MATCH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS28.000001","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-definitions"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"Match each IAS 28 term with its description.","es":""},"explanation":{"fr":"","en":"Each term has its own definition in IAS 28; the equity method is a method, not a relationship (IAS 28).","es":""},"common_error":{"fr":"","en":"Linking the joint venture to significant influence.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Significant influence","es":""}},{"id":"l2","text":{"fr":"","en":"Equity method","es":""}},{"id":"l3","text":{"fr":"","en":"Joint venture","es":""}},{"id":"l4","text":{"fr":"","en":"Associate","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"Arrangement whose parties with joint control have rights to the net assets","es":""}},{"id":"r4","text":{"fr":"","en":"Entity over which the investor exercises significant influence","es":""}},{"id":"r1","text":{"fr":"","en":"Power to participate in the financial and operating policy decisions of the investee, without controlling it","es":""}},{"id":"r2","text":{"fr":"","en":"Method that starts from cost and then follows the investor's share of net assets","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000005","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.EXEMPTIONS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"LOGISTICS","tested_point":"EXEMPT_SUBSIDIARY_INVESTOR","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000001","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-exemptions"},"references":["IAS 28 §17"],"exercise":{"prompt":{"fr":"","en":"Brevane SA holds 40% of Calmora SA, with significant influence. Brevane is a wholly-owned subsidiary of Dorlane SA, which publishes IFRS consolidated statements; Brevane's instruments are not traded in a public market and the cumulative conditions of the exemption are met (case facts). What does Brevane do?","es":""},"explanation":{"fr":"","en":"Rule to remember: an investor that meets the cumulative conditions of the exemption does not apply the equity method (IAS 28).","es":""},"common_error":{"fr":"","en":"Thinking significant influence always requires the equity method.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies it regardless, significant influence making the method compulsory","es":""},"correct":false,"feedback":{"fr":"","en":"When the exemption is met, significant influence no longer requires the method (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"It does not apply the equity method, the exemption conditions being met","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It leaves its parent to apply it in its place in Dorlane's consolidated accounts","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption frees Brevane from the method; it does not make it delegate its accounting (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"It measures the investment at fair value through profit or loss, an option open to wholly-owned subsidiaries","es":""},"correct":false,"feedback":{"fr":"","en":"That option is for venture capital and similar entities, not subsidiaries in general (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000006","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.DEFINITIONS","IAS28.SCOPE.EXEMPTIONS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"FOUR_STATEMENTS_DEFINITIONS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000001","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"pitfalls"},"references":["IAS 28 §3","IAS 28 §17"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on the relationships between investor and investee.","es":""},"explanation":{"fr":"","en":"Two statements restate the standard's definitions; two mix up the method and the relationships (IAS 28).","es":""},"common_error":{"fr":"","en":"Seeing the equity method as a partial consolidation.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"A joint venture is an arrangement whose parties with joint control have rights to the net assets.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"Significant influence is the power to participate in financial and operating policy decisions without control.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The equity method consolidates the investee line by line in proportion to the investor's percentage.","es":""},"erroneous":true,"correction":{"fr":"","en":"It starts from cost and then follows the investor's share; it is not line-by-line consolidation (IAS 28).","es":""}},{"id":"s4","text":{"fr":"","en":"An associate is an entity in which the investor exercises joint control.","es":""},"erroneous":true,"correction":{"fr":"","en":"An associate involves significant influence; joint control characterises the joint venture (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000007","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.HELD_FOR_SALE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"HFS_TREATMENT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS28.000001","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-held-for-sale"},"references":["IAS 28 §20"],"exercise":{"prompt":{"fr":"","en":"Telmar SA accounts for 30% of Garnel SA by the equity method. On 30 November, the IFRS 5 criteria are met to classify this investment as held for sale (case facts). What happens to its treatment?","es":""},"explanation":{"fr":"","en":"Rule to remember: an investment classified as held for sale is accounted for under IFRS 5, without the equity method (IAS 28).","es":""},"common_error":{"fr":"","en":"Continuing the equity method despite the held-for-sale classification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The equity method continues until the sale, IFRS 5 adding a mere note disclosure","es":""},"correct":false,"feedback":{"fr":"","en":"For an investment classified as held for sale, IFRS 5 applies, not the equity method (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"The equity method is suspended and then resumed at the start of the next year, whether or not the sale takes place","es":""},"correct":false,"feedback":{"fr":"","en":"The text provides neither a suspension nor an automatic resumption of the method (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"It is reclassified as a financial instrument measured under IFRS 9, from the day of classification","es":""},"correct":false,"feedback":{"fr":"","en":"Held-for-sale classification points to IFRS 5, not IFRS 9 (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"It is accounted for under IFRS 5 and the equity method stops being applied to it","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000008","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.HELD_FOR_SALE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FOOD","tested_point":"HFS_NOT_EQUITY_METHOD","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS28.000001","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-held-for-sale"},"references":["IAS 28 §20"],"exercise":{"prompt":{"fr":"","en":"An investment classified as held for sale under IFRS 5 is no longer accounted for by the equity method.","es":""},"explanation":{"fr":"","en":"IAS 28 points to IFRS 5 for this case: the classification takes the investment out of the equity method (IAS 28).","es":""},"common_error":{"fr":"","en":"Believing that significant influence keeps the equity method in place.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000009","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"PRESUMPTION_22","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-presumption"},"references":["IAS 28 §5"],"exercise":{"prompt":{"fr":"","en":"Veltor SA holds 22% of the voting rights of Hobart SA and no other fact is known. What is IAS 28's starting position?","es":""},"explanation":{"fr":"","en":"Rule to remember: 20% or more of the voting rights makes significant influence presumed, unless clearly shown otherwise (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Remembering a 25% or 50% threshold.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Significant influence is presumed absent until Veltor reaches half of the rights","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption of absence applies below 20%, not below half of the rights (IAS 28, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"Significant influence is presumed, and the presumption can be rebutted by a clear demonstration","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Significant influence is established irrebuttably, with no contrary demonstration admitted","es":""},"correct":false,"feedback":{"fr":"","en":"The 20% presumption is rebutted by a clear demonstration to the contrary (IAS 28, para. 5).","es":""}},{"id":"D","text":{"fr":"","en":"The holding is a financial instrument, a 25% threshold being required for IAS 28","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption threshold is 20%, not 25% (IAS 28, para. 5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000010","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"BANKING","tested_point":"BELOW_20_REBUTTABLE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-presumption"},"references":["IAS 28 §5"],"exercise":{"prompt":{"fr":"","en":"Below 20% of the voting rights, significant influence is presumed absent, but the investor can demonstrate that it exists.","es":""},"explanation":{"fr":"","en":"The presumption of absence below 20% is rebuttable, like the presumption of existence at 20% or more (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Seeing 20% as an impassable limit.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000011","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"INSURANCE","tested_point":"PRESUMPTION_REBUTTED","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"example"},"references":["IAS 28 §5"],"exercise":{"prompt":{"fr":"","en":"Mérel SA holds 26% of Sorvane SA, but a written shareholders' agreement removes any right to participate in policy decisions or to sit on the board, and Mérel has no exchange with Sorvane (case facts). Which conclusion is consistent with IAS 28?","es":""},"explanation":{"fr":"","en":"Rule to remember: the 20% presumption is overturned by a clear demonstration, for example a pact that excludes any participation in decisions (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Applying the method to the percentage without examining the facts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The presumption applies since 26% exceeds 20%, the pact having no effect on the analysis","es":""},"correct":false,"feedback":{"fr":"","en":"The pact is precisely a fact that can overturn the presumption (IAS 28, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"Influence is presumed, which requires Mérel to consolidate Sorvane","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence leads to the equity method, not to consolidation (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"The presumption can be overturned if the demonstration is clear: no influence","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Mérel freely chooses to apply the equity method or not according to its preference","es":""},"correct":false,"feedback":{"fr":"","en":"Applying the method follows from the facts and the standard, not from a preference (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000012","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.INDICATORS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"MANUFACTURING","tested_point":"INDICATORS_MC","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-indicators"},"references":["IAS 28 §6"],"exercise":{"prompt":{"fr":"","en":"Vestor SA holds an investment in Tavel SA. Which facts are indicators of significant influence cited by IAS 28?","es":""},"explanation":{"fr":"","en":"The indicators cited include board representation and the provision of essential technical information; buying on the exchange or a common auditor does not evidence influence (IAS 28).","es":""},"common_error":{"fr":"","en":"Counting as an indicator any fact common to both companies.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Vestor has two representatives on Tavel's board of directors","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Vestor acquired its Tavel shares on the stock exchange over several sessions","es":""},"correct":false,"feedback":{"fr":"","en":"The way the shares were acquired does not evidence influence over the entity (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"Vestor provides Tavel with technical information that is essential to its business","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Vestor and Tavel have their accounts audited by the same firm","es":""},"correct":false,"feedback":{"fr":"","en":"A common auditor is not an indicator of influence cited by the standard (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000013","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"RETAIL","tested_point":"PRESUMPTION_FILL","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-presumption"},"references":["IAS 28 §5"],"exercise":{"prompt":{"fr":"","en":"Complete the rule on the presumption of significant influence.","es":""},"explanation":{"fr":"","en":"The standard presumes influence from 20% of the voting rights; a clear demonstration to the contrary remains possible (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Replacing the contrary demonstration with an internal decision.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"If the investor holds, directly or indirectly, {{b1}} of the voting rights, significant influence is {{b2}}, unless there is {{b3}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"20% or more","es":""}},{"id":"c2","text":{"fr":"","en":"more than 50%","es":""}},{"id":"c3","text":{"fr":"","en":"at least 10%","es":""}}],"answer":"c1"},{"id":"b2","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"established without reservation","es":""}},{"id":"c2","text":{"fr":"","en":"presumed","es":""}},{"id":"c3","text":{"fr":"","en":"excluded","es":""}}],"answer":"c2"},{"id":"b3","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"a contrary decision of the board","es":""}},{"id":"c2","text":{"fr":"","en":"the consent of the investee","es":""}},{"id":"c3","text":{"fr":"","en":"a clear demonstration to the contrary","es":""}}],"answer":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000014","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AGRICULTURE","tested_point":"PRESUMPTION_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"pitfalls"},"references":["IAS 28 §5"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on the presumption of significant influence.","es":""},"explanation":{"fr":"","en":"Two statements restate the presumption rule; two distort it (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Turning a presumption into a mechanical rule.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"As soon as another investor holds the majority of the rights, a minority investor's significant influence is ruled out.","es":""},"erroneous":true,"correction":{"fr":"","en":"Majority ownership by another investor does not necessarily preclude significant influence (IAS 28, para. 5).","es":""}},{"id":"s2","text":{"fr":"","en":"Voting rights held indirectly, for example through subsidiaries, count in assessing the 20% threshold.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"Reaching 20% of the voting rights definitively establishes significant influence.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is a presumption that clear facts can overturn (IAS 28, para. 5).","es":""}},{"id":"s4","text":{"fr":"","en":"Below 20%, significant influence is presumed absent, unless the contrary is demonstrated.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000015","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.POTENTIAL_VOTING"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"POTENTIAL_RIGHTS_INTENT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-potential"},"references":["IAS 28 §7","IAS 28 §8"],"exercise":{"prompt":{"fr":"","en":"Zelmar SA holds 13% of the voting rights of Fenmor SA and warrants exercisable now on a further 9% of rights. Its management says it will not exercise them and that its cash would not allow it. How does Zelmar assess significant influence?","es":""},"explanation":{"fr":"","en":"Rule to remember: currently exercisable potential voting rights count; 13% + 9% = 22%, the starting point to examine (IAS 28).","es":""},"common_error":{"fr":"","en":"Letting management's intention decide which rights are counted.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It sticks to the 13% held, the stated intention of management setting the warrants aside","es":""},"correct":false,"feedback":{"fr":"","en":"Management's intention does not enter the assessment of potential rights (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"It excludes the warrants for lack of financial means, financial ability being an inclusion criterion","es":""},"correct":false,"feedback":{"fr":"","en":"The financial ability to exercise is precisely excluded from the assessment (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"It retains the warrants whose exercise is in the year's budget, which excludes these","es":""},"correct":false,"feedback":{"fr":"","en":"The budget expresses a management intention, which is set aside from the assessment (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"It includes the 9%, 22% in total, because intention and financial ability are set aside","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000016","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.INDICATORS","IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"LUXURY","tested_point":"INDICATORS_BELOW_20","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"judgment"},"references":["IAS 28 §5","IAS 28 §6"],"exercise":{"prompt":{"fr":"","en":"Lorvane SA holds 17% of the voting rights of Kestrel SA. It has one board seat out of seven, takes part in dividend decisions and carries out material transactions with Kestrel (case facts). What can Lorvane conclude?","es":""},"explanation":{"fr":"","en":"Rule to remember: indicators can demonstrate significant influence below 20%; the assessment covers all the facts (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Concluding that influence is absent on the percentage alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Influence is established as soon as the first indicator is met, without an overall review","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment covers all the facts, not an isolated indicator (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"Influence is ruled out, the 17% holding remaining below the 20% threshold","es":""},"correct":false,"feedback":{"fr":"","en":"Below 20%, absence is presumed but can be overturned by the facts (IAS 28, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"Significant influence can be demonstrated despite the 17%, in view of all the indicators","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The conclusion depends on the agreement of Kestrel's other shareholders, who must recognise it","es":""},"correct":false,"feedback":{"fr":"","en":"Influence results from the investor's rights and facts, not from recognition by third parties (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000017","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.PRESUMPTION_20","IAS28.INFLUENCE.INDICATORS","IAS28.INFLUENCE.POTENTIAL_VOTING"],"dimension":"ANALYSIS","format":"ORDERING","context":"CONSTRUCTION","tested_point":"ASSESSMENT_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"judgment"},"references":["IAS 28 §5","IAS 28 §6","IAS 28 §7"],"exercise":{"prompt":{"fr":"","en":"Put in order the approach to assessing significant influence proposed by this course (pedagogical organising hypothesis).","es":""},"explanation":{"fr":"","en":"The percentage opens the analysis, the facts and indicators conclude it; this is an organising approach, not a text of the standard (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Concluding before examining the facts.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"List the voting rights held directly and indirectly, including exercisable potential rights","es":""}},{"id":"s2","text":{"fr":"","en":"Compare the total with 20% to set the starting presumption","es":""}},{"id":"s3","text":{"fr":"","en":"Look for clear facts that would overturn the presumption","es":""}},{"id":"s4","text":{"fr":"","en":"Examine the indicators of influence present","es":""}},{"id":"s5","text":{"fr":"","en":"Conclude and document the reasoning","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000018","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.DEFINITION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"DEFINITION_OF_INFLUENCE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS28.000002","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-definition"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"Under IAS 28, what does significant influence mean?","es":""},"explanation":{"fr":"","en":"Rule to remember: significant influence is the power to participate in financial and operating policy decisions, without control or joint control (IAS 28).","es":""},"common_error":{"fr":"","en":"Confusing significant influence, control and the percentage of voting rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The power to participate in the financial and operating policy decisions of the investee, without controlling it","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The power to direct the investee's relevant activities and thereby affect the variable returns it generates","es":""},"correct":false,"feedback":{"fr":"","en":"That is the definition of control, which leads to consolidation (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"The power to decide jointly with another party, by unanimity, on the entity's relevant activities","es":""},"correct":false,"feedback":{"fr":"","en":"That is joint control, which characterises the joint venture (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"Holding at least 20% of the investee's voting rights, assessed with no other fact considered","es":""},"correct":false,"feedback":{"fr":"","en":"The percentage makes influence presumed; it does not define it (IAS 28, para. 5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000019","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.INITIAL_COST","IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"CALCULATION","format":"CALCULATION","context":"CHEMICALS","tested_point":"GOODWILL_CALC","difficulty":"BEGINNER","estimated_time_s":100,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"numeric-goodwill"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Haldor SA acquires 20% of Marel SA for €1,056,000 in cash. Marel's identifiable net assets, at fair value at the acquisition date, are €4,200,000 (case data). Calculate Haldor's share and then the difference from cost.","es":""},"explanation":{"fr":"","en":"20% × €4,200,000 = €840,000; €1,056,000 − €840,000 = €216,000, positive: goodwill included in the carrying amount (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Applying 20% to cost instead of identifiable net assets.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the investment","es":""},"value":"1056000","unit":"EUR"},{"label":{"fr":"","en":"Marel's identifiable net assets at fair value","es":""},"value":"4200000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Haldor's share","es":""},"answer":840000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Difference (goodwill)","es":""},"answer":216000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Haldor's share","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":20,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Marel's identifiable net assets at fair value","es":""},"value":4200000,"unit":"EUR"}],"result":840000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Difference (goodwill)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the investment","es":""},"value":1056000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Haldor's share","es":""},"value":840000,"unit":"EUR"}],"result":216000,"unit":"EUR"}],"references":["REF.IAS28.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000020","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"CALCULATION","format":"CALCULATION","context":"REALESTATE","tested_point":"BARGAIN_CALC","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"numeric-bargain"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Pelvan SA acquires 35% of Torvin SA for €1,050,000. Torvin's identifiable net assets are €3,400,000 at fair value (case data). Calculate the share and the difference, and give the amount of goodwill or income (as a positive amount).","es":""},"explanation":{"fr":"","en":"35% × €3,400,000 = €1,190,000; €1,050,000 − €1,190,000 = −€140,000: the difference is negative, so income of €140,000 (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Recording negative goodwill instead of income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the investment","es":""},"value":"1050000","unit":"EUR"},{"label":{"fr":"","en":"Torvin's identifiable net assets at fair value","es":""},"value":"3400000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"35","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Pelvan's share","es":""},"answer":1190000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Income (negative difference, absolute value)","es":""},"answer":140000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Pelvan's share","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":35,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Torvin's identifiable net assets at fair value","es":""},"value":3400000,"unit":"EUR"}],"result":1190000,"unit":"EUR"}],"references":["REF.IAS28.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000021","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"GOODWILL_PRESENTATION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"rule-goodwill"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"What treatment does IAS 28 give to the goodwill included in the investment in an associate?","es":""},"explanation":{"fr":"","en":"Rule to remember: the investment's goodwill is included in its carrying amount, not amortised, not presented separately (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Treating this goodwill like that of a consolidated subsidiary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is amortised on a straight-line basis and presented on a separate balance sheet line, like a subsidiary's goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"This goodwill is not amortised and has no line of its own (IAS 28, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"It is expensed immediately, the investor not controlling the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The price excess is an asset included in the investment, not an expense (IAS 28, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"It is presented in equity, as a deduction from the share of reserves","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is an asset of the investment, not an equity item (IAS 28, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"It is neither amortised nor presented separately; it stays in the carrying amount of the investment","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000022","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINTECH","tested_point":"GOODWILL_NOT_AMORTISED","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"rule-goodwill"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"The goodwill included in the carrying amount of an equity-accounted investment is amortised each year over its useful life.","es":""},"explanation":{"fr":"","en":"This goodwill is not amortised; any impairment follows the test of the whole investment (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Applying to the associate the treatment of a finite-life intangible asset.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000023","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.INITIAL_COST","IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AEROSPACE","tested_point":"INITIAL_ENTRY_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"entry-initial"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Wendel SA acquires 25% of Roc SA for €1,350,000 paid in cash; its share of net fair values is €1,080,000. Post the acquisition entry (goodwill has no separate account).","es":""},"explanation":{"fr":"","en":"The investment is recorded at its cost of €1,350,000; the €270,000 goodwill is included, with no separate account (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Debiting the investment with the share only and the rest to goodwill.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill (separate line)","es":""}},{"id":"pl","text":{"fr":"","en":"Share of profit of associates","es":""}}],"lines":[{"id":"l1","account":"inv","side":"DEBIT","amount":1350000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":1350000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000024","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.GOODWILL_AND_BARGAIN","IAS28.EM.INITIAL_COST"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TEXTILE","tested_point":"BARGAIN_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":130,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"entry-initial"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Narvik SA acquires 30% of Elden SA for €1,001,000 in cash; identifiable net assets at fair value are €3,630,000. Case convention: any income is included in the share of profit for the year of acquisition. Post the entries for the acquisition and the income.","es":""},"explanation":{"fr":"","en":"30% × €3,630,000 = €1,089,000; €1,001,000 < €1,089,000: income of €88,000, which brings the investment to €1,089,000 (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Crediting a negative goodwill instead of profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"pl","text":{"fr":"","en":"Share of profit of associates","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill (separate line)","es":""}}],"lines":[{"id":"l1","account":"inv","side":"DEBIT","amount":1001000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":1001000,"given":["account","side"]},{"id":"l3","account":"inv","side":"DEBIT","amount":88000,"given":["account","side"]},{"id":"l4","account":"pl","side":"CREDIT","amount":88000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000025","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"HEALTHCARE","tested_point":"GOODWILL_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"pitfalls"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on the goodwill and acquisition difference of an associate.","es":""},"explanation":{"fr":"","en":"Two statements restate the acquisition-difference rule; two treat the associate's goodwill like a subsidiary's (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Transposing the subsidiary rules to the associate.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"An associate's goodwill is presented on a line separate from intangible assets.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is included in the carrying amount of the investment, with no separate line (IAS 28, para. 32).","es":""}},{"id":"s2","text":{"fr":"","en":"The associate's goodwill is amortised on a straight-line basis over ten years.","es":""},"erroneous":true,"correction":{"fr":"","en":"Goodwill is not amortised (IAS 28, para. 32).","es":""}},{"id":"s3","text":{"fr":"","en":"The positive difference between cost and the share of net fair values is goodwill.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"If cost is lower than the share of net fair values, the difference is income.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000026","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.GOODWILL_AND_BARGAIN","IAS28.EM.INITIAL_COST"],"dimension":"CALCULATION","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"BOOK_VS_FAIR_VALUE_BASE","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"rule-goodwill"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Kerval SA buys 30% of Lumio SA for €1,170,000. Lumio has book net assets of €2,730,000 and identifiable net assets at fair value of €3,380,000 (case data). What is the goodwill on the investment?","es":""},"explanation":{"fr":"","en":"30% × €3,380,000 = €1,014,000; €1,170,000 − €1,014,000 = €156,000: goodwill (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Calculating the share on the investee's carrying amounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€1,014,000, that is the 30% share of net fair values","es":""},"correct":false,"feedback":{"fr":"","en":"€1,014,000 is the share itself; goodwill is the difference from cost (IAS 28, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"€351,000, that is €1,170,000 less 30% of the book net assets of €2,730,000","es":""},"correct":false,"feedback":{"fr":"","en":"The base is fair value at the acquisition date, not the carrying amount (IAS 28, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"€156,000, that is €1,170,000 less 30% of identifiable net assets at fair value","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Income of €156,000, the difference being calculated the other way round","es":""},"correct":false,"feedback":{"fr":"","en":"Cost exceeds the share: the difference is positive, so goodwill and not income (IAS 28, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000027","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.INITIAL_COST","IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"APPLICATION","format":"MINI_CASE","context":"RETAIL","tested_point":"ACQUISITION_MINI_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS28.000003","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"numeric-goodwill"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Acquisition of an investment in Tessol SA: calculation and presentation.","es":""},"explanation":{"fr":"","en":"The share is calculated on net fair values; the positive difference is goodwill included in the investment (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Presenting goodwill separately from the investment.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Brantel SA acquires 22% of the voting rights of Tessol SA for €1,573,000 in cash and obtains a board seat (case facts). At the acquisition date, Tessol's identifiable net assets, at fair value, are €6,050,000 (case data). Case convention: cost is the price paid.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate Brantel's share and then the difference from cost.","es":""},"explanation":{"fr":"","en":"22% × €6,050,000 = €1,331,000; €1,573,000 − €1,331,000 = €242,000.","es":""},"common_error":{"fr":"","en":"Applying the percentage to cost or comparing cost with the whole net assets: the share is the percentage of net assets at fair value.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"1573000","unit":"EUR"},{"label":{"fr":"","en":"Identifiable net assets at fair value","es":""},"value":"6050000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"22","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Brantel's share","es":""},"answer":1331000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Difference (goodwill)","es":""},"answer":242000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Brantel's share","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":22,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Identifiable net assets at fair value","es":""},"value":6050000,"unit":"EUR"}],"result":1331000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Difference (goodwill)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost","es":""},"value":1573000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Brantel's share","es":""},"value":1331000,"unit":"EUR"}],"result":242000,"unit":"EUR"}],"references":["REF.IAS28.32"]}},{"prompt":{"fr":"","en":"How does Brantel present this €242,000 goodwill?","es":""},"explanation":{"fr":"","en":"The investment's goodwill stays in its carrying amount (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Treating this goodwill as a subsidiary's.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Presented on a separate goodwill line and amortised over its useful life","es":""},"correct":false,"feedback":{"fr":"","en":"Neither a separate line nor amortisation for this goodwill (IAS 28, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"Deducted from Brantel's equity at the acquisition date","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is an asset of the investment, not a deduction from equity (IAS 28, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"Expensed in the year of acquisition, the investment staying at €1,331,000","es":""},"correct":false,"feedback":{"fr":"","en":"The investment stays at its cost of €1,573,000, goodwill included (IAS 28, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"Included in the €1,573,000 investment, with no amortisation or separate line","es":""},"correct":true}],"id":"p2","dimension":"RECOGNITION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000028","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI","IAS28.EM.DIVIDENDS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"ROLL_FORWARD_SIMPLE","difficulty":"BEGINNER","estimated_time_s":100,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"numeric-rollforward"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Vimar SA holds 25% of Nolan SA, equity-accounted; opening carrying amount €810,000. Nolan earns profit of €288,000 and distributes €108,000 in dividends (no other comprehensive income). Calculate the movements and the closing carrying amount.","es":""},"explanation":{"fr":"","en":"25% × €288,000 = €72,000; 25% × €108,000 = €27,000; €810,000 + €72,000 − €27,000 = €855,000 (IAS 28).","es":""},"common_error":{"fr":"","en":"Applying the percentage to the dividend alone or the profit alone.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"810000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Share of profit","es":""},"answer":72000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Dividends received","es":""},"answer":27000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Closing carrying amount","es":""},"answer":855000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s3","meaning":{"fr":"","en":"Closing carrying amount","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":810000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of profit","es":""},"value":72000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Dividends received","es":""},"value":27000,"unit":"EUR"}],"result":855000,"unit":"EUR"}],"references":["REF.IAS28.10"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000029","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI","IAS28.EM.DIVIDENDS"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"ROLL_FORWARD_OCI","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"numeric-rollforward"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Sarlin SA holds 40% of Dorec SA, equity-accounted; opening carrying amount €2,530,000. Dorec earns profit of €862,500, records a loss of €103,500 in other comprehensive income and distributes €287,500. Calculate each movement and the closing amount.","es":""},"explanation":{"fr":"","en":"40% × €862,500 = €345,000; 40% × (−€103,500) = −€41,400; 40% × €287,500 = €115,000; €2,530,000 + €345,000 − €41,400 − €115,000 = €2,718,600 (IAS 28).","es":""},"common_error":{"fr":"","en":"Ignoring the share of a loss in other comprehensive income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"2530000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Share of profit","es":""},"answer":345000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Share of other comprehensive income (negative)","es":""},"answer":-41400,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Dividends received","es":""},"answer":115000,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Closing carrying amount","es":""},"answer":2718600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Share of profit","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":40,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Dorec earns profit of €862,500","es":""},"value":862500,"unit":"EUR"}],"result":345000,"unit":"EUR"}],"references":["REF.IAS28.10"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000030","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"SHARE_OF_PROFIT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"entry-rollforward"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Fenwick SA holds 30% of Gorlin SA, equity-accounted. Gorlin makes a profit of €1,040,000. Post the entry for the share of profit (case convention: counterpart in share of profit).","es":""},"explanation":{"fr":"","en":"30% × €1,040,000 = €312,000: the investment increases against the share of profit, with no cash or dividend income (IAS 28).","es":""},"common_error":{"fr":"","en":"Debiting cash when no dividend has been paid.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"pl","text":{"fr":"","en":"Share of profit of associates","es":""}},{"id":"div","text":{"fr":"","en":"Dividend income","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"inv","side":"DEBIT","amount":312000,"given":["account","side"]},{"id":"l2","account":"pl","side":"CREDIT","amount":312000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000031","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.DIVIDENDS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"DIVIDEND_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"rule-dividends"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Gorlin SA distributes €390,000 in dividends; Fenwick SA, which holds 30%, collects them in cash. Post Fenwick's entry.","es":""},"explanation":{"fr":"","en":"30% × €390,000 = €117,000 collected, taken against the investment and not to income (IAS 28).","es":""},"common_error":{"fr":"","en":"Crediting dividend income on top of the share of profit.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"div","text":{"fr":"","en":"Dividend income","es":""}},{"id":"pl","text":{"fr":"","en":"Share of profit of associates","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":117000,"given":["account","side"]},{"id":"l2","account":"inv","side":"CREDIT","amount":117000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000032","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FOOD","tested_point":"DIVIDEND_TREATMENT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"rule-dividends"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Hestia SA, which accounts for its investment in Perlan SA by the equity method, receives a dividend from Perlan. How does it account for it?","es":""},"explanation":{"fr":"","en":"Rule to remember: dividends received reduce the carrying amount of the investment (IAS 28).","es":""},"common_error":{"fr":"","en":"Seeing the dividend as income, as for a simple holding.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As dividend income in profit or loss, the investment staying unchanged","es":""},"correct":false,"feedback":{"fr":"","en":"The income has already been recognised through the share of profit; the dividend reduces the investment (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"As deferred income, spread over the holding period of the investment","es":""},"correct":false,"feedback":{"fr":"","en":"There is no deferred income: the dividend immediately reduces the carrying amount (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"Directly in equity, as an investor reserve","es":""},"correct":false,"feedback":{"fr":"","en":"A dividend received does not create a reserve; it brings part of the investment back into cash (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"As a reduction of the carrying amount of the investment, against cash","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000033","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"SEMICONDUCTORS","tested_point":"SHARE_WITHOUT_DISTRIBUTION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"rule-share"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"The investor takes up its share of an associate's profit in the carrying amount of its investment even if the associate distributes no dividend.","es":""},"explanation":{"fr":"","en":"The share is taken up as soon as the associate earns its profit, distributed or not (IAS 28).","es":""},"common_error":{"fr":"","en":"Linking recognition of the share to the receipt of a dividend.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000034","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI","IAS28.EM.DIVIDENDS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TRANSPORT","tested_point":"MOVEMENT_DIRECTIONS","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"rule-share"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Classify each event by its effect on the carrying amount of an equity-accounted investment.","es":""},"explanation":{"fr":"","en":"The share of profit and of other comprehensive income increases the investment; the share of loss and dividends received decrease it; pre-acquisition profit and the other shareholders' part have no effect (IAS 28).","es":""},"common_error":{"fr":"","en":"Giving pre-acquisition profit a role in the investment.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Increases the investment","es":""}},{"id":"c2","text":{"fr":"","en":"Decreases the investment","es":""}},{"id":"c3","text":{"fr":"","en":"No effect on the investment","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Share of a post-acquisition profit of the associate","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Share of a gain in other comprehensive income of the associate","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Share of a loss of the associate","es":""},"category":"c2"},{"id":"i4","text":{"fr":"","en":"Dividend received from the associate","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Profit the associate had earned before the acquisition date","es":""},"category":"c3"},{"id":"i6","text":{"fr":"","en":"Part of the associate's dividend that goes to the other shareholders","es":""},"category":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000035","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI","IAS28.EM.DIVIDENDS"],"dimension":"APPLICATION","format":"ORDERING","context":"AUTOMOTIVE","tested_point":"ROLL_FORWARD_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"numeric-rollforward"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Put in order the lines of the roll-forward of an equity-accounted investment (presentation proposed by this course, as a pedagogical hypothesis).","es":""},"explanation":{"fr":"","en":"One starts from the opening, adds the shares, deducts the dividends and obtains the closing; the order is a presentation, not a text of the standard (IAS 28).","es":""},"common_error":{"fr":"","en":"Deducting dividends before adding the shares.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Opening carrying amount","es":""}},{"id":"s2","text":{"fr":"","en":"Plus: share of profit for the year","es":""}},{"id":"s3","text":{"fr":"","en":"Plus or minus: share of other comprehensive income","es":""}},{"id":"s4","text":{"fr":"","en":"Less: dividends received","es":""}},{"id":"s5","text":{"fr":"","en":"Closing carrying amount","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000036","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI"],"dimension":"CALCULATION","format":"CALCULATION","context":"HOSPITALITY","tested_point":"PART_YEAR_SHARE","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"numeric-rollforward"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Cobalt SA acquires 30% of Rimel SA on 1 April, year end 31 December. Rimel's annual profit is €720,000. Pedagogical hypothesis: profit is spread evenly over the year. Calculate the post-acquisition profit and then Cobalt's share.","es":""},"explanation":{"fr":"","en":"9/12 × €720,000 = €540,000; 30% × €540,000 = €162,000: only post-acquisition profit is taken up (IAS 28).","es":""},"common_error":{"fr":"","en":"Applying the percentage to the whole annual profit.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Rimel's annual profit","es":""},"value":"720000","unit":"EUR"},{"label":{"fr":"","en":"Months after acquisition","es":""},"value":"9","unit":"MONTHS"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Post-acquisition profit","es":""},"answer":540000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Cobalt's share","es":""},"answer":162000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Post-acquisition profit","es":""},"expression":"a / 12 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Months after acquisition","es":""},"value":9,"unit":"MONTHS"},{"symbol":"b","meaning":{"fr":"","en":"Rimel's annual profit","es":""},"value":720000,"unit":"EUR"}],"result":540000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Cobalt's share","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":30,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Post-acquisition profit","es":""},"value":540000,"unit":"EUR"}],"result":162000,"unit":"EUR"}],"references":["REF.IAS28.10"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000037","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI","IAS28.EM.DIVIDENDS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"BIOTECH","tested_point":"ROLL_FORWARD_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000004","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"pitfalls"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on updating the carrying amount of an investment.","es":""},"explanation":{"fr":"","en":"Two statements describe the equity-method mechanism; two shift its timing or period (IAS 28).","es":""},"common_error":{"fr":"","en":"Confusing the date of the profit with the date of the dividend.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"A dividend received from the associate is deducted from the carrying amount of the investment.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The investor takes up its share of the associate's profit on the date the dividend is distributed.","es":""},"erroneous":true,"correction":{"fr":"","en":"The share is taken up as soon as the associate earns its profit, distributed or not (IAS 28).","es":""}},{"id":"s3","text":{"fr":"","en":"The share of the associate's other comprehensive income also adjusts the carrying amount of the investment.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"Profit earned by the associate before the acquisition date is taken up in the investor's share.","es":""},"erroneous":true,"correction":{"fr":"","en":"Only post-acquisition profit is taken up (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000038","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.FAIR_VALUE_ADJUSTMENTS","IAS28.EM.SHARE_PROFIT_OCI"],"dimension":"CALCULATION","format":"CALCULATION","context":"MINING","tested_point":"FV_EXCESS_DEPRECIATION","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS28.000005","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"numeric-fvadj"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Valdor SA holds 40% of Halden SA. At acquisition, a Halden building is worth €690,000 more than its carrying amount; remaining useful life 15 years, straight line (case data). Halden publishes profit of €805,000. Calculate the additional depreciation, the adjusted profit and Valdor's share.","es":""},"explanation":{"fr":"","en":"€690,000 ÷ 15 = €46,000; €805,000 − €46,000 = €759,000; 40% × €759,000 = €303,600 (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Applying 40% to the published profit without the additional depreciation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value excess of the building","es":""},"value":"690000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life (years)","es":""},"value":"15","unit":"YEARS"},{"label":{"fr":"","en":"Profit published by Halden","es":""},"value":"805000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Annual additional depreciation","es":""},"answer":46000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Halden's adjusted profit","es":""},"answer":759000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Valdor's share","es":""},"answer":303600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Annual additional depreciation","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value excess of the building","es":""},"value":690000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining useful life (years)","es":""},"value":15,"unit":"YEARS"}],"result":46000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Halden's adjusted profit","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit published by Halden","es":""},"value":805000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual additional depreciation","es":""},"value":46000,"unit":"EUR"}],"result":759000,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Valdor's share","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":40,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Halden's adjusted profit","es":""},"value":759000,"unit":"EUR"}],"result":303600,"unit":"EUR"}],"references":["REF.IAS28.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000039","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.FAIR_VALUE_ADJUSTMENTS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"CONSUMER","tested_point":"ADJUSTED_SHARE_CHOICE","difficulty":"BEGINNER","estimated_time_s":80,"lesson_id":"LS.IAS28.000005","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-fvadj"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Roxane SA holds 25% of Tamar SA. Tamar publishes profit of €936,000; the additional depreciation linked to the acquisition fair values is €52,000 a year (case data). What share of profit does Roxane take up?","es":""},"explanation":{"fr":"","en":"Rule to remember: deduct the additional depreciation from the associate's profit before applying the percentage: 25% × €884,000 = €221,000 (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Taking up the published profit without adjustment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€221,000, that is, 25% of (€936,000 − €52,000)","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€234,000, that is, 25% of the profit published by Tamar","es":""},"correct":false,"feedback":{"fr":"","en":"The profit is first adjusted for the additional depreciation (IAS 28, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"€247,000, that is, 25% of (€936,000 + €52,000)","es":""},"correct":false,"feedback":{"fr":"","en":"The additional depreciation is deducted from profit, not added to it (IAS 28, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"€13,000, that is, 25% of the additional depreciation alone","es":""},"correct":false,"feedback":{"fr":"","en":"The additional depreciation adjusts profit; it is not its basis (IAS 28, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000040","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.FAIR_VALUE_ADJUSTMENTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"WATER","tested_point":"FV_EXCESS_NO_EFFECT","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS28.000005","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-fvadj"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"The fair value excess of one of the associate's depreciable assets at acquisition has no effect on the share of profit the investor subsequently takes up.","es":""},"explanation":{"fr":"","en":"The share is adjusted, for example for the additional depreciation based on that excess (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Thinking that only the associate's own accounts matter for the share.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000041","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.FAIR_VALUE_ADJUSTMENTS","IAS28.EM.SHARE_PROFIT_OCI"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PUBLISHING","tested_point":"SHARE_NET_OF_EXTRA_DEPRECIATION","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS28.000005","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"numeric-fvadj"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Bretel SA holds 20% of Cosmin SA. Cosmin publishes profit of €1,207,500; the additional depreciation linked to the acquisition fair values is €57,500 (case data). Post the entry for the share of profit (case convention: counterpart in share of profit).","es":""},"explanation":{"fr":"","en":"(€1,207,500 − €57,500) × 20% = €230,000: a single entry on the investment, with no depreciation expense at the investor (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Recording a depreciation expense separately at the investor.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"pl","text":{"fr":"","en":"Share of profit of associates","es":""}},{"id":"dep","text":{"fr":"","en":"Investor's depreciation expense","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"inv","side":"DEBIT","amount":230000,"given":["account","side"]},{"id":"l2","account":"pl","side":"CREDIT","amount":230000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000042","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.UNIFORM_POLICIES","IAS28.EM.SHARE_PROFIT_OCI"],"dimension":"CALCULATION","format":"CALCULATION","context":"REALESTATE","tested_point":"POLICY_ADJUSTMENT_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS28.000005","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-policies"},"references":["IAS 28 §35"],"exercise":{"prompt":{"fr":"","en":"Corvid SA, which measures its investment property at fair value, holds 30% of Elric SA, which measures it at cost. Elric publishes profit of €920,000 without having recognised a fair value increase of €172,500 on its properties (case data). Calculate the profit restated to Corvid's policies and then its share.","es":""},"explanation":{"fr":"","en":"€920,000 + €172,500 = €1,092,500; 30% × €1,092,500 = €327,750 (IAS 28, paras. 35 and 36).","es":""},"common_error":{"fr":"","en":"Taking up the published profit although the policies differ.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Profit published by Elric","es":""},"value":"920000","unit":"EUR"},{"label":{"fr":"","en":"Unrecognised fair value increase","es":""},"value":"172500","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Elric's restated profit","es":""},"answer":1092500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Corvid's share","es":""},"answer":327750,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Elric's restated profit","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit published by Elric","es":""},"value":920000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Unrecognised fair value increase","es":""},"value":172500,"unit":"EUR"}],"result":1092500,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Corvid's share","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":30,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Elric's restated profit","es":""},"value":1092500,"unit":"EUR"}],"result":327750,"unit":"EUR"}],"references":["REF.IAS28.35"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000043","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.UNIFORM_POLICIES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MARITIME","tested_point":"WHERE_TO_ADJUST","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS28.000005","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-policies"},"references":["IAS 28 §35"],"exercise":{"prompt":{"fr":"","en":"Navira SA's associate applies for its inventories a method different from Navira's, for like transactions. What does IAS 28 provide?","es":""},"explanation":{"fr":"","en":"Rule to remember: accounting policies are uniform; the associate is restated to the investor's policies (IAS 28, para. 35).","es":""},"common_error":{"fr":"","en":"Taking the associate's policies as the reference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Navira takes up the associate's profit under the associate's method, the difference being mentioned in the notes","es":""},"correct":false,"feedback":{"fr":"","en":"A note mention does not replace the adjustment of policies (IAS 28, para. 35).","es":""}},{"id":"B","text":{"fr":"","en":"Navira changes its own method to adopt the associate's in its consolidated statements","es":""},"correct":false,"feedback":{"fr":"","en":"It is the investor's policies that serve as the reference, not the associate's (IAS 28, para. 35).","es":""}},{"id":"C","text":{"fr":"","en":"The associate's statements are adjusted to Navira's policies before the equity method","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The adjustment is waived when management finds the profit difference small","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires uniform policies; it does not waive the adjustment on a view that the difference is small (IAS 28, para. 35).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000044","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.REPORTING_DATES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"LUXURY","tested_point":"DIFFERENT_YEAR_END","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000005","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-dates"},"references":["IAS 28 §33"],"exercise":{"prompt":{"fr":"","en":"Alvera SA closes on 31 December; its associate closes on 30 September and its statements at that date are used (case data). No significant event occurred between 30 September and 31 December. What does Alvera do?","es":""},"explanation":{"fr":"","en":"Rule to remember: a gap of at most three months is allowed, with adjustment for significant events in between, here none (IAS 28).","es":""},"common_error":{"fr":"","en":"Requiring statements at the investor's exact date in every case.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It suspends the equity method until the associate changes its year end","es":""},"correct":false,"feedback":{"fr":"","en":"A difference in dates does not prevent the equity method (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"It uses these statements: the three-month gap is accepted and no event adjustment is needed","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It uses the associate's statements for the previous year, easier to obtain","es":""},"correct":false,"feedback":{"fr":"","en":"The most recent statements within the permitted gap are used, not those of a prior year (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"It extrapolates the associate's profit to 31 December with a management estimate","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks to adjust for significant events, not to extrapolate profit (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000045","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.EM.FAIR_VALUE_ADJUSTMENTS","IAS28.EM.UNIFORM_POLICIES","IAS28.EM.REPORTING_DATES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GAMING","tested_point":"ADJUSTMENT_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000005","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"pitfalls"},"references":["IAS 28 §32","IAS 28 §35"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on the adjustments to the share of profit.","es":""},"explanation":{"fr":"","en":"Two statements restate the adjustment rules; two distort them (IAS 28, paras. 32 and 35).","es":""},"common_error":{"fr":"","en":"Extending depreciation to goodwill and neglecting events in between.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The goodwill included in the price is amortised together with the fair value excess of depreciable assets.","es":""},"erroneous":true,"correction":{"fr":"","en":"Goodwill is not amortised; only the excess on a depreciable asset is (IAS 28, para. 32).","es":""}},{"id":"s2","text":{"fr":"","en":"The additional depreciation is calculated on the fair value excess at the acquisition date.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"If the associate uses different accounting policies, its statements are adjusted before the equity method.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"When reporting dates differ, significant events in between are ignored.","es":""},"erroneous":true,"correction":{"fr":"","en":"Significant events or transactions between the two dates are adjusted for (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000046","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.UPSTREAM_DOWNSTREAM"],"dimension":"CALCULATION","format":"CALCULATION","context":"AEROSPACE","tested_point":"DOWNSTREAM_ELIMINATION_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"numeric-elim"},"references":["IAS 28 §28"],"exercise":{"prompt":{"fr":"","en":"Tolva SA holds 35% of Ruden SA and sells it goods costing €552,000 for €736,000. At the year end, Ruden still holds three quarters of those goods (case data). Calculate the unrealised profit and then the profit Tolva eliminates.","es":""},"explanation":{"fr":"","en":"(€736,000 − €552,000) × 75% = €138,000; 35% × €138,000 = €48,300: downstream, Tolva's share is eliminated (IAS 28, para. 28).","es":""},"common_error":{"fr":"","en":"Eliminating 35% of the total profit, including on goods already resold.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the goods","es":""},"value":"552000","unit":"EUR"},{"label":{"fr":"","en":"Selling price","es":""},"value":"736000","unit":"EUR"},{"label":{"fr":"","en":"Share still held by Ruden (%)","es":""},"value":"75","unit":"PERCENT"},{"label":{"fr":"","en":"Tolva's percentage in Ruden","es":""},"value":"35","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Unrealised profit","es":""},"answer":138000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Profit eliminated by Tolva","es":""},"answer":48300,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Unrealised profit","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Selling price","es":""},"value":736000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cost of the goods","es":""},"value":552000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Share still held by Ruden (%)","es":""},"value":75,"unit":"PERCENT"}],"result":138000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Profit eliminated by Tolva","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tolva's percentage in Ruden","es":""},"value":35,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Unrealised profit","es":""},"value":138000,"unit":"EUR"}],"result":48300,"unit":"EUR"}],"references":["REF.IAS28.28"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000047","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.UPSTREAM_DOWNSTREAM"],"dimension":"CALCULATION","format":"CALCULATION","context":"CHEMICALS","tested_point":"UPSTREAM_ELIMINATION_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"numeric-elim"},"references":["IAS 28 §28"],"exercise":{"prompt":{"fr":"","en":"Ruden SA, a 35% associate of Tolva SA, sells it products costing €1,120,000 for €1,414,000. At the year end, Tolva still holds 40% of those products (case data). Calculate the unrealised profit and then the profit Tolva eliminates.","es":""},"explanation":{"fr":"","en":"(€1,414,000 − €1,120,000) × 40% = €117,600; 35% × €117,600 = €41,160: upstream, the investor's share is eliminated (IAS 28, para. 28).","es":""},"common_error":{"fr":"","en":"Eliminating 100% of the unrealised profit instead of the share.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the products","es":""},"value":"1120000","unit":"EUR"},{"label":{"fr":"","en":"Selling price","es":""},"value":"1414000","unit":"EUR"},{"label":{"fr":"","en":"Share still held by Tolva (%)","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Tolva's percentage in Ruden","es":""},"value":"35","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Unrealised profit","es":""},"answer":117600,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Profit eliminated by Tolva","es":""},"answer":41160,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Unrealised profit","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Selling price","es":""},"value":1414000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cost of the products","es":""},"value":1120000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Share still held by Tolva (%)","es":""},"value":40,"unit":"PERCENT"}],"result":117600,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Profit eliminated by Tolva","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tolva's percentage in Ruden","es":""},"value":35,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Unrealised profit","es":""},"value":117600,"unit":"EUR"}],"result":41160,"unit":"EUR"}],"references":["REF.IAS28.28"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000048","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.UPSTREAM_DOWNSTREAM"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"DIRECTION_ID","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-direction"},"references":["IAS 28 §28"],"exercise":{"prompt":{"fr":"","en":"Kerston SA, which holds 30% of Lormel SA, sells Lormel a batch of equipment. Which direction of transaction is this?","es":""},"explanation":{"fr":"","en":"Rule to remember: downstream: the investor sells to the associate (IAS 28, para. 28).","es":""},"common_error":{"fr":"","en":"Determining the direction from the asset sold rather than from the seller.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Neither: Kerston holds less than half of Lormel's voting rights","es":""},"correct":false,"feedback":{"fr":"","en":"Elimination targets precisely transactions with an associate, held below control (IAS 28, para. 28).","es":""}},{"id":"B","text":{"fr":"","en":"Upstream: the sale goes from the investor to the associate, that is, upwards","es":""},"correct":false,"feedback":{"fr":"","en":"Upstream means a sale from the associate to the investor (IAS 28, para. 28).","es":""}},{"id":"C","text":{"fr":"","en":"Downstream: the investor sells to its associate, which then holds the asset","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Cross-over: the sale concerns equipment and not inventory","es":""},"correct":false,"feedback":{"fr":"","en":"The direction depends on the seller, not on the nature of the asset (IAS 28, para. 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000049","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.UPSTREAM_DOWNSTREAM"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TELECOM","tested_point":"DIRECTION_CLASSIFICATION","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-direction"},"references":["IAS 28 §28"],"exercise":{"prompt":{"fr":"","en":"Classify each transaction between an investor and its associate by direction.","es":""},"explanation":{"fr":"","en":"The direction depends on the seller: the investor sells, downstream; the associate sells, upstream (IAS 28, para. 28).","es":""},"common_error":{"fr":"","en":"Relying on the type of asset rather than the seller.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Downstream","es":""}},{"id":"c2","text":{"fr":"","en":"Upstream","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The investor sells a plot of land to the associate.","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"The associate sells components to the investor, which holds them in inventory.","es":""},"category":"c2"},{"id":"i3","text":{"fr":"","en":"The investor delivers goods to the associate, which will resell them.","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"The associate sells a machine to the investor.","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"The investor sells a patent to the associate.","es":""},"category":"c1"},{"id":"i6","text":{"fr":"","en":"The associate sells a building to the investor.","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000050","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.UPSTREAM_DOWNSTREAM"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FOOD","tested_point":"ELIMINATION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"entry-elim"},"references":["IAS 28 §28"],"exercise":{"prompt":{"fr":"","en":"Garnier SA holds 40% of Paloma SA and sold it goods with a profit of €140,000, all still in Paloma's inventory at the year end. Case convention: the elimination is taken to the share of profit, against the investment. Post the entry.","es":""},"explanation":{"fr":"","en":"40% × €140,000 = €56,000 eliminated: the share of profit and the investment decrease by that amount (IAS 28, para. 28).","es":""},"common_error":{"fr":"","en":"Cancelling the entire revenue of the sale to the associate.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"pl","text":{"fr":"","en":"Share of profit of associates","es":""}},{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"sales","text":{"fr":"","en":"Revenue","es":""}},{"id":"inventory","text":{"fr":"","en":"Inventories","es":""}}],"lines":[{"id":"l1","account":"pl","side":"DEBIT","amount":56000,"given":["account","side"]},{"id":"l2","account":"inv","side":"CREDIT","amount":56000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000051","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.IMPAIRMENT_INDICATOR","IAS28.ELIM.UPSTREAM_DOWNSTREAM"],"dimension":"CALCULATION","format":"CALCULATION","context":"MINING","tested_point":"LOSS_DOWNSTREAM_UPSTREAM_CALC","difficulty":"INTERMEDIATE","estimated_time_s":130,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-losses"},"references":["IAS 28 §29","IAS 28 §28"],"exercise":{"prompt":{"fr":"","en":"Orsa SA holds 30% of Tavin SA. (a) Orsa sells Tavin equipment with a carrying amount of €968,000 for €781,000, a price that shows an impairment of the equipment. (b) Tavin sells Orsa inventory at a loss of €143,000 showing a reduction in its net realisable value (case data). Calculate the loss recognised by Orsa in each case.","es":""},"explanation":{"fr":"","en":"(a) €968,000 − €781,000 = €187,000, in full (downstream); (b) 30% × €143,000 = €42,900 (upstream) (IAS 28, para. 29).","es":""},"common_error":{"fr":"","en":"Applying the share to both directions or the full amount to both directions.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the equipment","es":""},"value":"968000","unit":"EUR"},{"label":{"fr":"","en":"Selling price of the equipment","es":""},"value":"781000","unit":"EUR"},{"label":{"fr":"","en":"Tavin's loss on the inventory","es":""},"value":"143000","unit":"EUR"},{"label":{"fr":"","en":"Orsa's percentage in Tavin","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Loss recognised in (a), downstream","es":""},"answer":187000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Loss recognised in (b), upstream","es":""},"answer":42900,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000052","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.IMPAIRMENT_INDICATOR"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REALESTATE","tested_point":"LOSS_FULL_RECOGNITION","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-losses"},"references":["IAS 28 §29"],"exercise":{"prompt":{"fr":"","en":"Ravel SA sells its associate (25% held) a plot of land with a carrying amount of €440,000 for €363,000; a valuation confirms its recoverable amount is €363,000 (case facts). How is the €77,000 loss treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: a loss that shows an impairment is recognised in full in a downstream transaction (IAS 28, para. 29).","es":""},"common_error":{"fr":"","en":"Treating the loss as a negative profit eliminated at the share.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is limited to the 25% share, €19,250, like an unrealised profit","es":""},"correct":false,"feedback":{"fr":"","en":"For a downstream transaction showing an impairment, the loss is recognised in full (IAS 28, para. 29).","es":""}},{"id":"B","text":{"fr":"","en":"It is deferred until the associate sells the land to a third party","es":""},"correct":false,"feedback":{"fr":"","en":"A loss showing an impairment is not deferred (IAS 28, para. 29).","es":""}},{"id":"C","text":{"fr":"","en":"It is recognised at 75%, €57,750, the unrelated investors' part","es":""},"correct":false,"feedback":{"fr":"","en":"The evidence of impairment removes this proration: the loss is whole (IAS 28, para. 29).","es":""}},{"id":"D","text":{"fr":"","en":"It is recognised in full (€77,000), the transaction showing an impairment of the land","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000053","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.CONTRIBUTION_NON_MONETARY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"HEALTHCARE","tested_point":"CONTRIBUTION_GAIN","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-contribution"},"references":["IAS 28 §30","IAS 28 §31"],"exercise":{"prompt":{"fr":"","en":"Zander SA contributes land (carrying amount €594,000, fair value €825,000) to an associate in exchange for shares and then holds 15% of it. What gain does Zander recognise?","es":""},"explanation":{"fr":"","en":"€825,000 − €594,000 = €231,000; 15% × €231,000 = €34,650 eliminated; €231,000 − €34,650 = €196,350 (IAS 28).","es":""},"common_error":{"fr":"","en":"Recognising the whole gain on a contribution to an associate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€231,000, that is, the whole gain on the contribution, as for a sale to a third party","es":""},"correct":false,"feedback":{"fr":"","en":"A contribution to an associate falls under elimination of the share (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"€34,650, that is, the part eliminated, the part recognised","es":""},"correct":false,"feedback":{"fr":"","en":"The 15% part is the one eliminated, not the one recognised (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"€196,350, that is, the €231,000 gain less the 15% share eliminated","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"€0, the gain being deferred while Zander holds the shares received","es":""},"correct":false,"feedback":{"fr":"","en":"The part of the gain belonging to unrelated investors is recognised (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000054","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.SALE_BUSINESS_AMENDMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"AMENDMENT_STATUS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-amendment"},"references":["IAS 28"],"exercise":{"prompt":{"fr":"","en":"Which statement is accurate about the 2014 amendments on sales or contributions of assets to an associate or joint venture?","es":""},"explanation":{"fr":"","en":"Rule to remember: the 2014 amendments are not mandatory: their effective date is deferred indefinitely, earlier application remaining permitted (IAS 28, 2014 amendments).","es":""},"common_error":{"fr":"","en":"Presenting the 2014 amendments as a rule in force.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They have been mandatory since 2016 for contributions as well as sales of assets","es":""},"correct":false,"feedback":{"fr":"","en":"Their effective date was deferred indefinitely in December 2015 (IAS 28, 2014 amendments).","es":""}},{"id":"B","text":{"fr":"","en":"Their application is not mandatory, the effective date being deferred indefinitely","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They target joint ventures and leave associates outside their scope","es":""},"correct":false,"feedback":{"fr":"","en":"They cover associates as well as joint ventures (IAS 28, 2014 amendments).","es":""}},{"id":"D","text":{"fr":"","en":"They set a full gain for an asset sold, whether or not it forms a business","es":""},"correct":false,"feedback":{"fr":"","en":"The full gain is reserved for a transaction involving a business (IAS 28, 2014 amendments).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000055","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.ELIM.SALE_BUSINESS_AMENDMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GAMING","tested_point":"AMENDMENT_CONTENT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS28.000006","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-amendment"},"references":["IAS 28"],"exercise":{"prompt":{"fr":"","en":"The 2014 amendments provide for a full gain or loss when the transaction with the associate involves a business, and a partial gain or loss in other cases.","es":""},"explanation":{"fr":"","en":"That is the content of these amendments, whose effective date is deferred indefinitely (IAS 28, 2014 amendments).","es":""},"common_error":{"fr":"","en":"Confusing the content of the amendments with an applicable rule.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000056","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.BEYOND_INTEREST"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"LOSS_CAP_SIMPLE","difficulty":"BEGINNER","estimated_time_s":100,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"numeric-cap"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"Pastel SA holds 25% of Plenor SA; its investment is €750,000 and it has no other interest in Plenor. Plenor loses €3,750,000 for the year. Calculate the share of losses, the loss recognised and the unrecognised part.","es":""},"explanation":{"fr":"","en":"25% × €3,750,000 = €937,500; cap: €750,000; €937,500 − €750,000 = €187,500 not recognised (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Recognising the whole share of €937,500.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Pastel's investment","es":""},"value":"750000","unit":"EUR"},{"label":{"fr":"","en":"Plenor's loss","es":""},"value":"3750000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Share of losses","es":""},"answer":937500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Loss recognised","es":""},"answer":750000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Loss not recognised","es":""},"answer":187500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Share of losses","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":25,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Plenor's loss","es":""},"value":3750000,"unit":"EUR"}],"result":937500,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Loss not recognised","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Share of losses","es":""},"value":937500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Pastel's investment","es":""},"value":750000,"unit":"EUR"}],"result":187500,"unit":"EUR"}],"references":["REF.IAS28.38"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000057","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.BEYOND_INTEREST","IAS28.LOSSES.LONG_TERM_INTERESTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"LOSS_CAP_WITH_LOAN","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-cap"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"Odile SA holds 40% of Zanto SA: investment €312,500, long-term loan forming part of the net investment €562,500, trade receivable €87,500. Zanto loses €2,750,000. Calculate Odile's interest, the loss recognised and the loss not recognised.","es":""},"explanation":{"fr":"","en":"Interest: €312,500 + €562,500 = €875,000 (the trade receivable is excluded); share: 40% × €2,750,000 = €1,100,000; recognised: €875,000; not recognised: €225,000 (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Including the trade receivable in the interest.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Investment","es":""},"value":"312500","unit":"EUR"},{"label":{"fr":"","en":"Long-term loan (net investment)","es":""},"value":"562500","unit":"EUR"},{"label":{"fr":"","en":"Trade receivable","es":""},"value":"87500","unit":"EUR"},{"label":{"fr":"","en":"Zanto's loss","es":""},"value":"2750000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Odile's interest","es":""},"answer":875000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Loss recognised","es":""},"answer":875000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Loss not recognised","es":""},"answer":225000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Odile's interest","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Investment","es":""},"value":312500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Long-term loan (net investment)","es":""},"value":562500,"unit":"EUR"}],"result":875000,"unit":"EUR"}],"references":["REF.IAS28.38"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000058","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.BEYOND_INTEREST","IAS28.LOSSES.LONG_TERM_INTERESTS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AGRICULTURE","tested_point":"CAPPED_LOSS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":130,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"entry-cap"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"Ferox SA holds 30% of Gamel SA: investment €253,000, long-term loan forming part of the net investment €149,500. The share of losses for the year is €471,500. Case convention: the loss allocated to the loan reduces the loan. Post the entry for the losses recognised.","es":""},"explanation":{"fr":"","en":"Interest: €253,000 + €149,500 = €402,500; the €471,500 loss is capped at €402,500; the remaining €69,000 is not recognised and no provision is booked (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Recording €471,500 and booking the difference as a provision.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"pl","text":{"fr":"","en":"Share of profit of associates (loss)","es":""}},{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"loan","text":{"fr":"","en":"Long-term loan to the associate","es":""}},{"id":"prov","text":{"fr":"","en":"Provision for the associate's losses","es":""}}],"lines":[{"id":"l1","account":"pl","side":"DEBIT","amount":402500,"given":["account","side"]},{"id":"l2","account":"inv","side":"CREDIT","amount":253000,"given":["account","side"]},{"id":"l3","account":"loan","side":"CREDIT","amount":149500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000059","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.BEYOND_INTEREST","IAS28.LOSSES.LONG_TERM_INTERESTS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"ALLOCATION_ORDER","difficulty":"BEGINNER","estimated_time_s":100,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-cap"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"An investor's interest comprises its investment (€174,000) and a long-term loan forming part of the net investment (€116,000). Its share of losses is €217,500. How is it allocated?","es":""},"explanation":{"fr":"","en":"Rule to remember: losses that exceed the investment go to the other components of the interest, in reverse order of seniority (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Spreading the loss in proportion to the amounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€174,000 to the investment, then €43,500 to the loan, in reverse order of seniority","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€116,000 to the loan first, then €101,500 to the investment","es":""},"correct":false,"feedback":{"fr":"","en":"The most subordinated component, the investment, absorbs the loss first (IAS 28, para. 38).","es":""}},{"id":"C","text":{"fr":"","en":"€130,500 to the investment and €87,000 to the loan, in proportion to the amounts","es":""},"correct":false,"feedback":{"fr":"","en":"Allocation follows the reverse order of seniority, not a proration (IAS 28, para. 38).","es":""}},{"id":"D","text":{"fr":"","en":"€217,500 to the investment, which becomes negative by €43,500","es":""},"correct":false,"feedback":{"fr":"","en":"The excess is allocated to the other components of the interest, here the loan (IAS 28, para. 38).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000060","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.LONG_TERM_INTERESTS","IAS28.LOSSES.BEYOND_INTEREST"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"RETAIL","tested_point":"INTEREST_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-lt"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"Which items enter the interest used to cap an investor's losses in its associate (the loan has no planned repayment date: case data)?","es":""},"explanation":{"fr":"","en":"The interest includes the carrying amount of the investment and long-term interests forming part of the net investment; trade receivables are excluded (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Counting trade receivables in the interest.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A receivable arising from a delivery of goods to the associate, payable in 60 days","es":""},"correct":false,"feedback":{"fr":"","en":"A short-term trade receivable is excluded from the interest (IAS 28, para. 38).","es":""}},{"id":"B","text":{"fr":"","en":"The carrying amount of the equity-accounted investment","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The investor's share of the associate's reserves before acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"Pre-acquisition reserves are already in the price paid, not an item to add (IAS 28, para. 38).","es":""}},{"id":"D","text":{"fr":"","en":"A long-term loan granted to the associate, with no repayment planned","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000061","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.LIABILITY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"LIABILITY_GUARANTEE","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-liability"},"references":["IAS 28 §39"],"exercise":{"prompt":{"fr":"","en":"Quentin SA's interest in its associate is at zero; the share of additional losses is €137,750. Quentin has contractually guaranteed a loan of the associate for €58,000 (legal obligation; the expected cash outflow equals the guarantee: case convention). What liability does it recognise?","es":""},"explanation":{"fr":"","en":"Rule to remember: beyond the interest, the liability is limited to the legal or constructive obligation or payments made on behalf of the associate: €58,000 (IAS 28).","es":""},"common_error":{"fr":"","en":"Providing for the share of losses without regard to the obligation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€137,750, that is, its share of the additional losses","es":""},"correct":false,"feedback":{"fr":"","en":"Without an obligation for the balance, the share is not recognised as a liability (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"€58,000, to the extent of its legal obligation","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"€79,750, that is, the share of losses less the guarantee already given","es":""},"correct":false,"feedback":{"fr":"","en":"The liability matches the obligation, not the balance of the share (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"€0, the interest being at zero, there is no liability left to recognise","es":""},"correct":false,"feedback":{"fr":"","en":"A liability is recognised to the extent of a legal or constructive obligation (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000062","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.LIABILITY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"CONSTRUCTION","tested_point":"LIABILITY_NO_OBLIGATION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-liability"},"references":["IAS 28 §39"],"exercise":{"prompt":{"fr":"","en":"Once its investment has been reduced to zero, the investor keeps recognising as a liability its share of the associate's losses, even without a legal or constructive obligation.","es":""},"explanation":{"fr":"","en":"Without an obligation or payment on behalf of the associate, no liability is recognised (IAS 28).","es":""},"common_error":{"fr":"","en":"Providing for losses the investor does not have to bear.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000063","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.BEYOND_INTEREST","IAS28.LOSSES.LONG_TERM_INTERESTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"LUXURY","tested_point":"LOSS_CAP_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"pitfalls"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on the cap on an associate's losses.","es":""},"explanation":{"fr":"","en":"Two statements describe the cap; two extend its base or the liability (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Extending the interest to trade receivables and the liability to losses without an obligation.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The investor's interest includes the carrying amount of the investment and the long-term interests forming part of the net investment.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"Short-term trade receivables from the associate form part of the interest used to cap losses.","es":""},"erroneous":true,"correction":{"fr":"","en":"Trade receivables are excluded from the interest (IAS 28, para. 38).","es":""}},{"id":"s3","text":{"fr":"","en":"When the interest is reduced to zero, the investor recognises a liability for the whole of its share of subsequent losses.","es":""},"erroneous":true,"correction":{"fr":"","en":"A liability is recognised only for a legal or constructive obligation or payments on behalf of the associate (IAS 28).","es":""}},{"id":"s4","text":{"fr":"","en":"Excess losses are allocated to the other components of the interest in reverse order of their seniority.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000064","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.BEYOND_INTEREST","IAS28.LOSSES.LIABILITY"],"dimension":"APPLICATION","format":"MINI_CASE","context":"INSURANCE","tested_point":"LOSS_CAP_MINI_CASE","difficulty":"INTERMEDIATE","estimated_time_s":200,"lesson_id":"LS.IAS28.000007","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"numeric-cap"},"references":["IAS 28 §38","IAS 28 §39"],"exercise":{"prompt":{"fr":"","en":"Quora SA's losses and the investor Vestal SA: cap then liability.","es":""},"explanation":{"fr":"","en":"Cap at the interest of €1,020,000, then a liability limited to the obligation of €85,000 (IAS 28).","es":""},"common_error":{"fr":"","en":"Recognising the whole share.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Vestal SA holds 20% of Quora SA: investment €850,000; long-term loan forming part of the net investment €170,000 (case data). Quora loses €6,800,000. Vestal has also contractually guaranteed a Quora loan up to €85,000 (legal obligation; expected cash outflow equals the guarantee: case convention).","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the share of losses, the loss recognised within the interest limit and the unrecognised part.","es":""},"explanation":{"fr":"","en":"20% × €6,800,000 = €1,360,000; interest €850,000 + €170,000 = €1,020,000; not recognised €1,360,000 − €1,020,000 = €340,000.","es":""},"common_error":{"fr":"","en":"Recognising the whole share of losses, or stopping at the investment without the loan: the loss is limited to the interest, including the loan forming part of the net investment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Investment","es":""},"value":"850000","unit":"EUR"},{"label":{"fr":"","en":"Loan forming part of the net investment","es":""},"value":"170000","unit":"EUR"},{"label":{"fr":"","en":"Quora's loss","es":""},"value":"6800000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Share of losses","es":""},"answer":1360000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Loss recognised","es":""},"answer":1020000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Loss not recognised","es":""},"answer":340000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Share of losses","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Percentage held","es":""},"value":20,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Quora's loss","es":""},"value":6800000,"unit":"EUR"}],"result":1360000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Loss recognised","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Investment","es":""},"value":850000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loan forming part of the net investment","es":""},"value":170000,"unit":"EUR"}],"result":1020000,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Loss not recognised","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Share of losses","es":""},"value":1360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss recognised","es":""},"value":1020000,"unit":"EUR"}],"result":340000,"unit":"EUR"}],"references":["REF.IAS28.38","REF.IAS28.39"]}},{"prompt":{"fr":"","en":"What liability does Vestal recognise for the €340,000 not recognised?","es":""},"explanation":{"fr":"","en":"The liability is limited to the legal obligation of €85,000 (IAS 28).","es":""},"common_error":{"fr":"","en":"Providing for the balance of losses without an obligation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€340,000, that is, the whole unrecognised share of losses","es":""},"correct":false,"feedback":{"fr":"","en":"Only the part covered by the obligation gives rise to a liability (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"€255,000, that is, the unrecognised losses less the guarantee","es":""},"correct":false,"feedback":{"fr":"","en":"The liability follows the obligation, not the balance of losses (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"€0, the guarantee being an off-balance-sheet commitment until the associate defaults","es":""},"correct":false,"feedback":{"fr":"","en":"In this case, the expected outflow equals the guarantee: a liability is recognised (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"€85,000, to the extent of the guarantee, a legal obligation","es":""},"correct":true}],"id":"p2","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000065","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.INDICATORS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"ENERGY","tested_point":"EVIDENCE_CLASSIFICATION","difficulty":"BEGINNER","estimated_time_s":100,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-indicators"},"references":["IAS 28 §40","IAS 28 §41A"],"exercise":{"prompt":{"fr":"","en":"Classify each fact about an associate: is it objective evidence of impairment of the investment, or unrelated to the net investment's future cash flows?","es":""},"explanation":{"fr":"","en":"Objective evidence is what, after initial recognition, adversely affects the net investment's future cash flows; good news or a fact specific to the investor is not (IAS 28, paras. 40 and 41A).","es":""},"common_error":{"fr":"","en":"Seeing evidence in any news about the associate or the investor.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Objective evidence of impairment","es":""}},{"id":"c2","text":{"fr":"","en":"Unrelated to the net investment's future cash flows","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The associate is in significant financial difficulty and is negotiating a rescheduling of its debt.","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"A major adverse legal change hits the associate's sector.","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"The associate loses its main customer, which accounted for half of its business.","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"The associate's profit increases for the year.","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"The investor obtains a better credit rating for its own group.","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"The associate's shareholders subscribe a capital increase that strengthens its cash position.","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000066","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"CALCULATION","format":"CALCULATION","context":"TRANSPORT","tested_point":"RECOVERABLE_AMOUNT_CALC","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-test"},"references":["IAS 28 §42"],"exercise":{"prompt":{"fr":"","en":"For Marden SA's investment in an associate, value in use is €966,000; fair value is €997,500 and costs of disposal are €42,000 (case data). Calculate fair value less costs of disposal and then the recoverable amount.","es":""},"explanation":{"fr":"","en":"€997,500 − €42,000 = €955,500; the recoverable amount is the higher of €966,000 and €955,500, that is €966,000 (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Taking the lower of the two values.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Value in use","es":""},"value":"966000","unit":"EUR"},{"label":{"fr":"","en":"Fair value","es":""},"value":"997500","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"42000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":955500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Recoverable amount","es":""},"answer":966000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value","es":""},"value":997500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs of disposal","es":""},"value":42000,"unit":"EUR"}],"result":955500,"unit":"EUR"}],"references":["REF.IAS28.42"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000067","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"IMPAIRMENT_LOSS_CALC","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"numeric-test"},"references":["IAS 28 §42"],"exercise":{"prompt":{"fr":"","en":"Dorian SA's investment in an associate is €3,335,000, goodwill of €362,500 included. Objective evidence exists. Value in use is €3,030,500; fair value is €2,900,000 and costs of disposal €29,000 (case data). Calculate the recoverable amount, the impairment loss and the new carrying amount.","es":""},"explanation":{"fr":"","en":"€2,900,000 − €29,000 = €2,871,000; the higher of €3,030,500 and €2,871,000 is €3,030,500; €3,335,000 − €3,030,500 = €304,500; the investment goes to €3,030,500 (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount with the investment excluding goodwill.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount (goodwill included)","es":""},"value":"3335000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"3030500","unit":"EUR"},{"label":{"fr":"","en":"Fair value","es":""},"value":"2900000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"29000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Recoverable amount","es":""},"answer":3030500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Impairment loss","es":""},"answer":304500,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"New carrying amount","es":""},"answer":3030500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount (goodwill included)","es":""},"value":3335000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":3030500,"unit":"EUR"}],"result":304500,"unit":"EUR"}],"references":["REF.IAS28.42"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000068","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REALESTATE","tested_point":"IMPAIRMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"entry-test"},"references":["IAS 28 §42"],"exercise":{"prompt":{"fr":"","en":"Lorgan SA's investment in an associate is €1,480,000, goodwill included; its recoverable amount is €1,345,000. Case convention: the impairment loss is presented on a separate line. Post the entry.","es":""},"explanation":{"fr":"","en":"€1,480,000 − €1,345,000 = €135,000: the loss reduces the whole investment, without touching a separate goodwill account (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Crediting a separate goodwill account.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"loss","text":{"fr":"","en":"Impairment loss on the investment (profit or loss)","es":""}},{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill (separate line)","es":""}},{"id":"share","text":{"fr":"","en":"Share of profit of associates","es":""}}],"lines":[{"id":"l1","account":"loss","side":"DEBIT","amount":135000,"given":["account","side"]},{"id":"l2","account":"inv","side":"CREDIT","amount":135000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000069","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"LOGISTICS","tested_point":"RECOVERABLE_HIGHER_OF","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-test"},"references":["IAS 28 §42"],"exercise":{"prompt":{"fr":"","en":"The recoverable amount of the investment is the lower of value in use and fair value less costs of disposal.","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of the two values (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Confusing the recoverable amount with a minimum cautious value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000070","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"SINGLE_ASSET_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-test"},"references":["IAS 28 §42"],"exercise":{"prompt":{"fr":"","en":"Talmar SA's investment is €1,860,000, of which €232,500 is goodwill; objective evidence exists and the recoverable amount of the investment is €1,705,000 (case data). What impairment loss does Talmar recognise?","es":""},"explanation":{"fr":"","en":"€1,860,000 − €1,705,000 = €155,000 (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Testing goodwill separately from the investment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€155,000, that is the whole carrying amount less the recoverable amount","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€232,500, that is the goodwill, written off first","es":""},"correct":false,"feedback":{"fr":"","en":"The investment is a single asset; the loss is the overall gap with the recoverable amount (IAS 28, para. 42).","es":""}},{"id":"C","text":{"fr":"","en":"€0, the recoverable amount exceeding the investment excluding goodwill, that is €1,627,500","es":""},"correct":false,"feedback":{"fr":"","en":"The whole carrying amount, goodwill included, is tested, not a value excluding goodwill (IAS 28, para. 42).","es":""}},{"id":"D","text":{"fr":"","en":"€1,705,000, that is the recoverable amount, which becomes the loss","es":""},"correct":false,"feedback":{"fr":"","en":"The loss is the difference between carrying amount and recoverable amount, not the recoverable amount (IAS 28, para. 42).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000071","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.INDICATORS","IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"IMPAIRMENT_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"pitfalls"},"references":["IAS 28 §40","IAS 28 §42"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on the impairment of an equity-accounted investment.","es":""},"explanation":{"fr":"","en":"Two statements restate the test; two distort its trigger or its scope (IAS 28, paras. 40 to 42).","es":""},"common_error":{"fr":"","en":"Testing goodwill separately or requiring an impairment already recognised by the associate.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The test is triggered by objective evidence resulting from events after initial recognition.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The recoverable amount is the higher of value in use and fair value less costs of disposal.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The investment's goodwill is tested separately, at the level of a larger cash-generating unit.","es":""},"erroneous":true,"correction":{"fr":"","en":"The whole investment, goodwill included, is tested as a single asset (IAS 28, para. 42).","es":""}},{"id":"s4","text":{"fr":"","en":"Significant financial difficulty of the associate cannot be evidence, since the associate itself has recognised no impairment.","es":""},"erroneous":true,"correction":{"fr":"","en":"Significant financial difficulty is an example of objective evidence (IAS 28, para. 41A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000072","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.PROPOSED_CHANGES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"PROPOSAL_STATUS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-proposed"},"references":["IAS 28 §41C","IAS 28"],"exercise":{"prompt":{"fr":"","en":"A colleague claims that the 2026 proposal on impairment evidence already applies. Which answer is accurate?","es":""},"explanation":{"fr":"","en":"Rule to remember: an IASB staff proposal is not a rule; the rule in force applies as long as no amendment is adopted (IAS 28).","es":""},"common_error":{"fr":"","en":"Treating a working proposal as an applicable rule.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Applicable from the 2026 year, it replaces \"cost\" with \"carrying amount\"","es":""},"correct":false,"feedback":{"fr":"","en":"A staff proposal is not a standard in force (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"A staff proposal, which does not amend the Standard: the current rule applies","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Adopted by the IASB, its first application is optional until 2027","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing indicates adoption: a proposal does not amend the Standard (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"Removing the requirement for objective evidence, it lightens the test of the investment","es":""},"correct":false,"feedback":{"fr":"","en":"The proposal concerns the wording of an example of fair value decline, not the trigger of the test (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000073","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.PROPOSED_CHANGES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FOOD","tested_point":"PROPOSAL_NOT_A_RULE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS28.000008","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-proposed"},"references":["IAS 28 §41C","IAS 28"],"exercise":{"prompt":{"fr":"","en":"A February 2026 IASB staff proposal on the wording of impairment indicators for the investment is not, in itself, a rule in force in IAS 28.","es":""},"explanation":{"fr":"","en":"The proposal does not amend the Standard; the current rule remains the one that applies (IAS 28).","es":""},"common_error":{"fr":"","en":"Treating a staff working paper as an adopted amendment.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000074","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.LOSS_OF_INFLUENCE"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"GAIN_ON_LOSS_OF_INFLUENCE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"numeric-loss"},"references":["IAS 28 §22"],"exercise":{"prompt":{"fr":"","en":"Danvers SA loses significant influence over its associate. Carrying amount of the investment €3,480,000; consideration received €2,755,000; fair value of the retained interest €1,160,000; cumulative other comprehensive income €159,500 (gain), reclassified to profit or loss (pedagogical hypothesis). Calculate the gain or loss to recognise.","es":""},"explanation":{"fr":"","en":"€2,755,000 + €1,160,000 + €159,500 − €3,480,000 = €594,500 gain (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Forgetting the retained fair value or the other comprehensive income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"3480000","unit":"EUR"},{"label":{"fr":"","en":"Consideration received","es":""},"value":"2755000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the retained interest","es":""},"value":"1160000","unit":"EUR"},{"label":{"fr":"","en":"Other comprehensive income reclassified","es":""},"value":"159500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Gain on loss of influence","es":""},"answer":594500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Gain on loss of influence","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration received","es":""},"value":2755000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the retained interest","es":""},"value":1160000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Other comprehensive income reclassified","es":""},"value":159500,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Carrying amount","es":""},"value":3480000,"unit":"EUR"}],"result":594500,"unit":"EUR"}],"rationale":{"fr":"","en":"€2,755,000 + €1,160,000 + €159,500 − €3,480,000 = €594,500 gain (IAS 28, para. 22).","es":""},"references":["REF.IAS28.22"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000075","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.LOSS_OF_INFLUENCE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"INSURANCE","tested_point":"LOSS_OF_INFLUENCE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"entry-loss"},"references":["IAS 28 §22"],"exercise":{"prompt":{"fr":"","en":"Hervé SA loses significant influence over its associate: carrying amount €1,275,000; consideration received in cash €994,500; retained interest measured at €442,000; cumulative other comprehensive income in reserve (gain) €34,000, reclassified to profit or loss (pedagogical hypothesis). Post the entry, the gain being the balancing amount.","es":""},"explanation":{"fr":"","en":"€994,500 + €442,000 + €34,000 − €1,275,000 = €195,500 gain; debits and credits balance at €1,470,500 (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Leaving the retained interest at its previous carrying amount.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"fa","text":{"fr":"","en":"Financial asset (retained interest)","es":""}},{"id":"oci","text":{"fr":"","en":"Cumulative other comprehensive income (reserve)","es":""}},{"id":"inv","text":{"fr":"","en":"Investment in an associate","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on loss of significant influence (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":994500,"given":["account","side"]},{"id":"l2","account":"fa","side":"DEBIT","amount":442000,"given":["account","side"]},{"id":"l3","account":"oci","side":"DEBIT","amount":34000,"given":["account","side"]},{"id":"l4","account":"inv","side":"CREDIT","amount":1275000,"given":["account","side"]},{"id":"l5","account":"gain","side":"CREDIT","amount":195500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000076","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.LOSS_OF_INFLUENCE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"MARITIME","tested_point":"STOP_DATE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-loss"},"references":["IAS 28 §22"],"exercise":{"prompt":{"fr":"","en":"On 15 March, Dalson SA sells shares and loses significant influence over its associate; year end 31 December. From when does it stop the equity method?","es":""},"explanation":{"fr":"","en":"Rule to remember: the equity method stops from the date significant influence is lost (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Stopping the equity method at the year end or at the decision to sell.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the 31 December year end, to present a full year of share","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method stops at the date of loss, not at the year end (IAS 28, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"From 1 January of the year, the loss of influence being retroactive to the start of the period","es":""},"correct":false,"feedback":{"fr":"","en":"There is no retroactivity: the share is taken up until 15 March (IAS 28, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"From 15 March, the date significant influence is lost","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"On the date the board decided to sell, even though influence lasted until the sale","es":""},"correct":false,"feedback":{"fr":"","en":"It is the actual loss of influence that counts, not the decision to sell (IAS 28, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000077","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.LOSS_OF_INFLUENCE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"RETAINED_INTEREST_VALUE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-loss"},"references":["IAS 28 §22"],"exercise":{"prompt":{"fr":"","en":"After a loss of significant influence, Edmar SA keeps 6% of its former associate, a financial asset. Proportionate carrying amount for 6%: €510,000; fair value at the date of loss: €578,000. Which value does Edmar use for this asset?","es":""},"explanation":{"fr":"","en":"Rule to remember: a retained interest that is a financial asset is recorded at fair value at the date of loss of influence: €578,000 (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Carrying over a proportionate carrying amount to avoid a gain.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€578,000, its fair value at the date of loss of influence","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€510,000, the proportionate carrying amount, without recognising a gain","es":""},"correct":false,"feedback":{"fr":"","en":"The retained interest is measured at fair value, the difference going to profit or loss (IAS 28, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"€544,000, the average of the two values, to smooth the gap","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided for; fair value applies (IAS 28, para. 22).","es":""}},{"id":"D","text":{"fr":"","en":"€68,000, the gap between the two values, the amount to record","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is recorded at its whole fair value, not at the gap (IAS 28, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000078","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.ASSOC_TO_JV"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"AGRICULTURE","tested_point":"ASSOCIATE_BECOMES_JV","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-jv"},"references":["IAS 28 §24"],"exercise":{"prompt":{"fr":"","en":"When an associate becomes a joint venture, the investor continues to apply the equity method without remeasuring the retained interest.","es":""},"explanation":{"fr":"","en":"The associate / joint venture switch is not an exit from the equity method (IAS 28).","es":""},"common_error":{"fr":"","en":"Treating this switch as a loss of significant influence.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000079","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.PARTIAL_DISPOSAL_OCI"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"OCI_PROPORTION_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-partial"},"references":["IAS 28 §25"],"exercise":{"prompt":{"fr":"","en":"Bastien SA goes from 60% to 45% of Cerdan SA and keeps significant influence. Cumulative other comprehensive income is €324,000 (gain, recyclable: pedagogical hypothesis). Calculate the proportion of reduction and then the amount reclassified to profit or loss.","es":""},"explanation":{"fr":"","en":"(60 − 45) ÷ 60 = 25%; 25% × €324,000 = €81,000 reclassified to profit or loss (IAS 28).","es":""},"common_error":{"fr":"","en":"Dividing the reduction by the final holding instead of the initial holding.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Holding before the disposal (%)","es":""},"value":"60","unit":"PERCENT"},{"label":{"fr":"","en":"Holding after the disposal (%)","es":""},"value":"45","unit":"PERCENT"},{"label":{"fr":"","en":"Cumulative other comprehensive income","es":""},"value":"324000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Proportion of the reduction","es":""},"answer":25,"tolerance":0,"unit":"PERCENT"},{"id":"s2","label":{"fr":"","en":"Amount reclassified to profit or loss","es":""},"answer":81000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Amount reclassified to profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Proportion of the reduction","es":""},"value":25,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative other comprehensive income","es":""},"value":324000,"unit":"EUR"}],"result":81000,"unit":"EUR"}],"references":["REF.IAS28.25"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000080","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.PARTIAL_DISPOSAL_OCI","IAS28.DISC.LOSS_OF_INFLUENCE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"PARTIAL_VS_FULL_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-partial"},"references":["IAS 28 §22","IAS 28 §25"],"exercise":{"prompt":{"fr":"","en":"Fabron SA sells part of its investment in an associate but keeps significant influence. Which treatment applies?","es":""},"explanation":{"fr":"","en":"Rule to remember: partial disposal without loss of influence: the method continues and a proportion of other comprehensive income is reclassified (IAS 28).","es":""},"common_error":{"fr":"","en":"Applying the loss-of-influence treatment to a mere reduction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The equity method stops and the retained interest is remeasured at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"That treatment is for a loss of influence, which is absent here (IAS 28, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"The equity method continues and the whole of the other comprehensive income is reclassified to profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"Only the proportion linked to the reduction is reclassified (IAS 28).","es":""}},{"id":"C","text":{"fr":"","en":"The equity method continues with no reclassification, the investment remaining an associate","es":""},"correct":false,"feedback":{"fr":"","en":"The reduction in the interest triggers reclassification of a proportion (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"The equity method continues and the proportion linked to the reduction is reclassified to profit or loss","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000081","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.BECOMES_SUBSIDIARY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"ASSOCIATE_BECOMES_SUBSIDIARY","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-subsidiary"},"references":["IAS 28"],"exercise":{"prompt":{"fr":"","en":"Ostrava SA, which equity-accounted 35% of Pilar SA, acquires a further 30 points and takes control of Pilar (case facts). What is the general treatment?","es":""},"explanation":{"fr":"","en":"Rule to remember: when the associate becomes a subsidiary, the equity method stops and consolidation applies (IFRS 10).","es":""},"common_error":{"fr":"","en":"Prolonging the equity method after control is obtained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The equity method continues until the end of the year, consolidation starting the next","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method stops when the entity becomes a subsidiary (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Ostrava accounts for its 65% under IFRS 9, as a financial asset at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"A subsidiary is consolidated, not measured as a financial asset (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Ostrava continues the equity method and adds the 30 points acquired to the investment","es":""},"correct":false,"feedback":{"fr":"","en":"With control, consolidation replaces the equity method (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"The equity method stops and Ostrava consolidates Pilar under IFRS 10 and IFRS 3, line-by-line consolidation replacing it","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000082","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.DISC.LOSS_OF_INFLUENCE","IAS28.DISC.PARTIAL_DISPOSAL_OCI"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"SEMICONDUCTORS","tested_point":"DISCONTINUATION_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000009","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"pitfalls"},"references":["IAS 28 §22","IAS 28 §25"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on the end of the equity method.","es":""},"explanation":{"fr":"","en":"Two statements restate the exit rules; two shift the date or the remeasurement (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Mixing up exit, change of status and partial disposal.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The equity method stops at the end of the year following the loss of significant influence.","es":""},"erroneous":true,"correction":{"fr":"","en":"It stops from the date of the loss (IAS 28, para. 22).","es":""}},{"id":"s2","text":{"fr":"","en":"On loss of significant influence, a retained interest that is a financial asset is measured at fair value.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"When an associate becomes a joint venture, the retained interest is remeasured at fair value and the gain goes to profit or loss.","es":""},"erroneous":true,"correction":{"fr":"","en":"The equity method continues without remeasurement (IAS 28).","es":""}},{"id":"s4","text":{"fr":"","en":"In a partial disposal with influence retained, the proportion of other comprehensive income linked to the reduction is reclassified.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000083","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS11"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"CONSTRUCTION","tested_point":"JV_PARTY_TREATMENT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS28.000010","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ifrs11"},"references":["IAS 28"],"exercise":{"prompt":{"fr":"","en":"Tarvos SA and Ulbo SA exercise joint control, by unanimous agreement, of an entity in which they have rights to the net assets (case facts). How does Tarvos account for its interest?","es":""},"explanation":{"fr":"","en":"Rule to remember: a party to a joint venture applies the equity method under IAS 28, unless exempted (IFRS 11, para. 24).","es":""},"common_error":{"fr":"","en":"Consolidating the joint venture as a subsidiary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By the equity method under IAS 28, unless that standard provides an exemption","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"By line-by-line consolidation of the entity, to the extent of half of its assets and liabilities","es":""},"correct":false,"feedback":{"fr":"","en":"A joint venture with rights to net assets is equity-accounted, not consolidated (IFRS 11, para. 24).","es":""}},{"id":"C","text":{"fr":"","en":"Under IFRS 9, as a financial instrument measured at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"With joint control, it is the equity method that applies (IFRS 11, para. 24).","es":""}},{"id":"D","text":{"fr":"","en":"At acquisition cost, with no adjustment until the joint venture is sold","es":""},"correct":false,"feedback":{"fr":"","en":"The investment follows the share of results: it is not frozen cost (IAS 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000084","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS11"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FOOD","tested_point":"JV_WITHOUT_JOINT_CONTROL","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS28.000010","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ifrs11"},"references":["IAS 28"],"exercise":{"prompt":{"fr":"","en":"In a joint venture, Vireo SA holds 12% with a board seat and significant influence, without joint control; Wanda SA holds 6% without joint control or significant influence (case facts). Which standards apply to their interests?","es":""},"explanation":{"fr":"","en":"Rule to remember: without joint control, IFRS 9 applies, except with significant influence where IAS 28 applies (IFRS 11, para. 25).","es":""},"common_error":{"fr":"","en":"Reasoning only on the absence of joint control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 9 for Vireo as for Wanda, neither having joint control","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence takes Vireo back to IAS 28 (IFRS 11, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 28 for Vireo as for Wanda, an interest in a joint venture being subject to it","es":""},"correct":false,"feedback":{"fr":"","en":"Without joint control or significant influence, Wanda falls under IFRS 9 (IFRS 11, para. 25).","es":""}},{"id":"C","text":{"fr":"","en":"IAS 28 for Vireo (significant influence), IFRS 9 for Wanda (neither joint control nor influence)","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"IFRS 11 for both, each consolidating the joint venture to the extent of its share","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 11 points to IAS 28 or IFRS 9 for accounting for the interest (IFRS 11, paras. 24 and 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000085","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IAS36"],"dimension":"CALCULATION","format":"CALCULATION","context":"STEEL","tested_point":"IAS36_LOSS_CALC","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS28.000010","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ias36"},"references":["IAS 28 §42","IAS 28"],"exercise":{"prompt":{"fr":"","en":"Havel SA's investment in an associate is €946,000 (goodwill included). Objective evidence exists; value in use is €893,200, fair value €913,000 and costs of disposal €27,500 (case data). Calculate the recoverable amount and the impairment loss under IAS 36 applied to the whole investment.","es":""},"explanation":{"fr":"","en":"€913,000 − €27,500 = €885,500; the higher of €893,200 and €885,500 is €893,200; €946,000 − €893,200 = €52,800 (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Using fair value less costs of disposal when value in use is higher.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"946000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"893200","unit":"EUR"},{"label":{"fr":"","en":"Fair value","es":""},"value":"913000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"27500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Recoverable amount","es":""},"answer":893200,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Impairment loss","es":""},"answer":52800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":946000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":893200,"unit":"EUR"}],"result":52800,"unit":"EUR"}],"references":["REF.IAS28.42"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000086","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IAS36"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"WATER","tested_point":"GOODWILL_ALLOCATION_TO_CGU","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS28.000010","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ias36"},"references":["IAS 28 §42","IAS 28"],"exercise":{"prompt":{"fr":"","en":"To apply IAS 36 to its investment, the investor allocates the investment's goodwill to a larger cash-generating unit of its group.","es":""},"explanation":{"fr":"","en":"The investment's goodwill is neither tested separately nor allocated to a larger unit; the investment is a single asset (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Transposing to the investment the allocation of a subsidiary's goodwill.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000087","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS10"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AEROSPACE","tested_point":"RETAINED_INTEREST_COST","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS28.000010","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ifrs10"},"references":["IAS 28"],"exercise":{"prompt":{"fr":"","en":"Nolan SA sells 35% of its subsidiary Orsa SA and loses control; it keeps 25%, with significant influence. The fair value of that 25% is €1,261,000 and its share of consolidated carrying amount is €1,066,000. What is the initial cost of the investment in the associate?","es":""},"explanation":{"fr":"","en":"Rule to remember: on loss of control, the fair value of the retained investment is the cost on initial recognition of an associate (IFRS 10, para. 25).","es":""},"common_error":{"fr":"","en":"Keeping the old consolidated carrying amount as the associate's cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€1,261,000, the fair value of the retained investment at the date of loss of control","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€1,066,000, the retained share of consolidated carrying amount without remeasurement","es":""},"correct":false,"feedback":{"fr":"","en":"The retained investment is measured at fair value, which becomes the cost (IFRS 10, para. 25).","es":""}},{"id":"C","text":{"fr":"","en":"€1,163,500, the average of the fair value and the share of carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided for; fair value applies (IFRS 10, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"€195,000, the gap between fair value and carrying amount, the amount recorded","es":""},"correct":false,"feedback":{"fr":"","en":"The investment is recorded for its whole fair value, not for the gap (IFRS 10, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000088","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS9"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"LONG_TERM_INTEREST_IFRS9","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS28.000010","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ifrs9"},"references":["IAS 28","IAS 28 §22"],"exercise":{"prompt":{"fr":"","en":"A long-term loan granted to an associate forms part, in substance, of the net investment. Which standards come into play?","es":""},"explanation":{"fr":"","en":"Rule to remember: long-term interests forming part of the net investment are subject to IFRS 9 and enter the interest that caps losses (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Seeing only one of the two regimes for a loan to an associate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 28 alone, the loan being absorbed into the carrying amount of the investment","es":""},"correct":false,"feedback":{"fr":"","en":"The loan remains a financial instrument subject to IFRS 9 (IAS 28).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 9 for the loan, with no effect on the loss cap of the investment","es":""},"correct":false,"feedback":{"fr":"","en":"The loan enters the interest used to cap losses (IAS 28, para. 38).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 11, which governs loans granted to joint ventures and associates","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 11 does not deal with the impairment model for such loans; IFRS 9 does (IAS 28).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 9, including expected credit losses, and IAS 28 for the loss cap","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000089","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS12"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"HEALTHCARE","tested_point":"DISCLOSURE_LOCATION","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS28.000010","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ifrs12"},"references":["IAS 28"],"exercise":{"prompt":{"fr":"","en":"Where are the disclosures on the nature and risks of interests in associates and joint ventures, and their summarised financial information, found?","es":""},"explanation":{"fr":"","en":"Rule to remember: the disclosures about associates and joint ventures are in IFRS 12 (IFRS 12).","es":""},"common_error":{"fr":"","en":"Looking for the notes to publish in the accounting standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In IAS 28, whose last paragraphs list the notes to be published","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosures are in IFRS 12, not in IAS 28 (IFRS 12).","es":""}},{"id":"B","text":{"fr":"","en":"In IFRS 12, while IAS 28 deals with accounting for the investments","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In IFRS 11, which deals with joint ventures and also associates","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 11 deals with joint arrangements; the disclosures are in IFRS 12 (IFRS 12).","es":""}},{"id":"D","text":{"fr":"","en":"In IFRS 7, which governs the disclosures on the financial instruments held","es":""},"correct":false,"feedback":{"fr":"","en":"Interests in associates fall under IFRS 12, not IFRS 7 (IFRS 12).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS28.000090","source":"V2","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.ED2024"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"LUXURY","tested_point":"ED2024_STATUS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS28.000010","review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ed2024"},"references":["IAS 28"],"exercise":{"prompt":{"fr":"","en":"The 2024 exposure draft on the equity method proposes among other things to present the share of profit and the share of other comprehensive income separately; it is a proposal and not a rule in force.","es":""},"explanation":{"fr":"","en":"The proposal is a step in a debate and does not amend the Standard (IAS 28, 2024 exposure draft).","es":""},"common_error":{"fr":"","en":"Applying an exposure draft as a rule in force.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000001","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.DEFINITIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000001","tested_point":"QST.IAS28.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-definitions"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"Significant influence is the power to participate in the financial and operating policy decisions of the investee, without control or joint control of those policies.","es":""},"explanation":{"fr":"","en":"An associate is an entity over which the investor has significant influence; significant influence is the power to participate in the financial and operating policy decisions of the investee without control or joint control of those policies (IAS 28, para. 3). Trap: Confusing significant influence and joint control. Rule to remember: Significant influence: participating in decisions, without controlling or jointly controlling (IAS 28, para. 3).","es":""},"common_error":{"fr":"","en":"Confusing significant influence and joint control.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000002","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.DEFINITIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000002","tested_point":"QST.IAS28.000002","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-definitions"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds interests in three entities. In Brise SA, it has significant influence without control or joint control. In Cime SA, it shares control with another party, and both parties have rights to the net assets. In Dune SA, it has control. How is Brise SA classified for Alba?","es":""},"explanation":{"fr":"","en":"Brise is an associate: Alba has significant influence over it, without control or joint control (IAS 28, para. 3). Cime, jointly controlled with rights to the net assets, is a joint venture; Dune, controlled, is a subsidiary. The equity method recognises the investment at cost and then adjusts it for the investor's share of the net assets (IAS 28, para. 3). Trap: Confusing significant influence and joint control. Rule to remember: Associate = significant influence; joint venture = joint control; subsidiary = control (IAS 28, para. 3).","es":""},"common_error":{"fr":"","en":"Confusing significant influence and joint control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A subsidiary, since significant influence is a form of control exercised over the investee.","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence is exercised without control: if Alba controlled Brise, Brise would be a subsidiary, which the case rules out (IAS 28, para. 3). Rule to remember: Significant influence and control are mutually exclusive (IAS 28, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"An associate, accounted for under the equity method.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A joint venture, since significant influence gives Alba rights to the net assets of Brise.","es":""},"correct":false,"feedback":{"fr":"","en":"A joint venture requires joint control, with rights to the net assets for the parties exercising it; Cime fits that description, not Brise (IAS 28, para. 3). Rule to remember: Joint venture = joint control, associate = significant influence (IAS 28, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"A simple financial investment, significant influence not changing the classification of the holding.","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence is precisely what makes the investee an associate, which is not a simple investment (IAS 28, para. 3). Rule to remember: Significant influence changes the classification and the accounting method (IAS 28, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000003","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000003","tested_point":"QST.IAS28.000003","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-exemptions"},"references":["IAS 28 §17","IAS 28 §18"],"exercise":{"prompt":{"fr":"","en":"Which statements about the exemptions from the equity method are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"An investor does not apply the equity method if it is exempt from presenting consolidated statements under IFRS 10 (para. 4(a)) or meets the cumulative exemption conditions (IAS 28, para. 17); a venture capital organisation, mutual fund, unit trust or similar entity may choose fair value through profit or loss under IFRS 9 (IAS 28, para. 18). Trap: Applying the exemption without checking all the cumulative conditions. Rule to remember: The exemptions are defined restrictively (IAS 28, para. 17).","es":""},"common_error":{"fr":"","en":"Applying the exemption without checking all the cumulative conditions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A small investor is relieved of applying the equity method to its associates, whatever its other characteristics.","es":""},"correct":false,"feedback":{"fr":"","en":"The investor's size is not among the exemptions: the cases covered are the exemption from consolidating, the cumulative conditions and the election for venture capital and similar entities (IAS 28, para. 17). Rule to remember: There is no exemption based on size (IAS 28, para. 17).","es":""}},{"id":"B","text":{"fr":"","en":"A venture capital organisation or a mutual fund may choose to measure its investments in associates at fair value through profit or loss under IFRS 9.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An investor exempt from presenting consolidated statements under IFRS 10 (para. 4(a)) does not apply the equity method.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The exemption conditions are cumulative and mirror those of the intermediate parent: ownership, unlisted securities, no filing with a regulator, IFRS statements published by the higher parent.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Fair value measurement of associates is open to any investor that prefers a simpler treatment than the equity method.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value election is reserved for venture capital organisations, mutual funds, unit trusts or similar entities, not for any investor (IAS 28, para. 18). Rule to remember: The election applies to a category of entities (IAS 28, para. 18).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000005","standard_id":"IAS28","concept_ids":["IAS28.SCOPE.HELD_FOR_SALE"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000005","tested_point":"QST.IAS28.000005","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-held-for-sale"},"references":["IAS 28 §20"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 25% of Brise SA and has significant influence over it. At the reporting date, this investment meets the criteria for classification as held for sale under IFRS 5 (case data). How does Alba account for it?","es":""},"explanation":{"fr":"","en":"An investment classified as held for sale under IFRS 5 is accounted for under IFRS 5 and not under the equity method (IAS 28, para. 20). Alba therefore stops applying the equity method to Brise for the part classified as held for sale. Trap: Continuing the equity method for an investment classified as held for sale. Rule to remember: IFRS 5 prevails over the equity method for an investment held for sale (IAS 28, para. 20).","es":""},"common_error":{"fr":"","en":"Continuing the equity method for an investment classified as held for sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under the equity method, significant influence remaining despite the decision to sell, until the actual date of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method does not continue for an investment classified as held for sale: it falls under IFRS 5 (IAS 28, para. 20). Remaining significant influence does not change that treatment. Rule to remember: Held for sale: IFRS 5, not the equity method (IAS 28, para. 20).","es":""}},{"id":"B","text":{"fr":"","en":"At fair value through profit or loss under IFRS 9, classification as held for sale ending significant influence.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification as held for sale is not a fair value measurement under IFRS 9: the text refers to IFRS 5 for this investment (IAS 28, para. 20). Rule to remember: The reference is to IFRS 5 (IAS 28, para. 20).","es":""}},{"id":"C","text":{"fr":"","en":"By line-by-line consolidation until the sale, the commitment to sell implying control of the entity by the buyer.","es":""},"correct":false,"feedback":{"fr":"","en":"Alba does not control Brise: line-by-line consolidation is not the treatment provided, which is that of IFRS 5 (IAS 28, para. 20). Rule to remember: A plan to sell does not create control (IAS 28, para. 20).","es":""}},{"id":"D","text":{"fr":"","en":"Under IFRS 5, and not under the equity method.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000006","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000006","tested_point":"QST.IAS28.000006","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-definition"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"What is the significant influence of an investor over an investee?","es":""},"explanation":{"fr":"","en":"Significant influence is the power to participate in the financial and operating policy decisions of the investee, without control or joint control of them; the entity over which it is exercised is an associate (IAS 28, para. 3). Trap: Equating significant influence with the power to decide the entity's policies alone. Rule to remember: Significant influence: participating, without controlling or jointly controlling (IAS 28, para. 3).","es":""},"common_error":{"fr":"","en":"Equating significant influence with the power to decide the entity's policies alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The power to participate in the financial and operating policy decisions of the entity, without control or joint control of them.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The power to decide unilaterally on the financial and operating policy of the investee, without having to take other shareholders into account.","es":""},"correct":false,"feedback":{"fr":"","en":"Deciding unilaterally on those policies is control, not significant influence, which consists of participating in decisions without controlling them (IAS 28, para. 3). Rule to remember: Significant influence is participation in decisions, not autonomous decision-making power (IAS 28, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"The right to hold more than half of the voting rights of the investee, directly or through its subsidiaries.","es":""},"correct":false,"feedback":{"fr":"","en":"Holding more than half of the voting rights points to control, and is not the definition of significant influence, which is exercised without control (IAS 28, para. 3). Rule to remember: Significant influence is defined by participation in decisions (IAS 28, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"The contractually agreed sharing of control of the investee with other parties, with rights to its net assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The contractually agreed sharing of control describes joint control, which significant influence excludes by definition (IAS 28, para. 3). Rule to remember: No joint control within significant influence (IAS 28, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000007","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000007","tested_point":"QST.IAS28.000007","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-definition"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"Which statements about the associate, significant influence and the joint venture are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"An associate is an entity over which the investor has significant influence; a joint venture is a joint arrangement whose parties with joint control have rights to the net assets; the equity method recognises the investment at cost then adjusts it for the investor's share of the net assets (IAS 28, para. 3). Significant influence is not a power to decide alone. Trap: Equating significant influence with the power to decide alone. Rule to remember: Associate, joint venture and equity method each have their own criterion (IAS 28, para. 3).","es":""},"common_error":{"fr":"","en":"Equating significant influence with the power to decide the entity's policies alone.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The equity method measures the investment at fair value every year, with no reference to the initial cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method does not remeasure the investment at fair value every year: it starts from cost and adjusts for the investor's share of the net assets (IAS 28, para. 3). Rule to remember: Starting cost, then adjustment for the share (IAS 28, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"An associate is an entity over which the investor has significant influence.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Significant influence is the power to decide, in place of the other shareholders, the financial and operating policies of the investee.","es":""},"correct":false,"feedback":{"fr":"","en":"Deciding policies alone is control: significant influence is the power to participate in decisions without control or joint control (IAS 28, para. 3). Rule to remember: Significant influence = participation in decisions (IAS 28, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"The equity method recognises the investment at cost, then adjusts it for the investor's share of the net assets.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A joint venture is a joint arrangement in which the parties with joint control have rights to the net assets.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000008","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.DEFINITION"],"dimension":"ANALYSIS","context":"V1_QST.IAS28.000008","tested_point":"QST.IAS28.000008","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-definition"},"references":["IAS 28 §3"],"exercise":{"prompt":{"fr":"","en":"A colleague writes: \"Alba SA can have significant influence over Brise SA only if it alone decides its financial and operating policies.\" What is wrong with this reasoning?","es":""},"explanation":{"fr":"","en":"Significant influence is the power to participate in the financial and operating policy decisions of the investee without control or joint control of them (IAS 28, para. 3). Deciding alone is control. Trap: Equating significant influence with the power to decide the entity's policies alone. Rule to remember: Participating in decisions is enough for significant influence (IAS 28, para. 3).","es":""},"common_error":{"fr":"","en":"Equating significant influence with the power to decide the entity's policies alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It overlooks that significant influence requires a contractually agreed sharing of control of Brise with other parties, which then hold rights to Brise's net assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Contractually agreed sharing of control is joint control, which significant influence excludes (IAS 28, para. 3). The colleague errs on the other side: overstating the power required. Rule to remember: Significant influence and joint control are distinct (IAS 28, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"It wrongly holds that significant influence requires less than 20% of the voting rights, a higher percentage leading to control.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition contains no percentage: significant influence is the power to participate in decisions without control or joint control (IAS 28, para. 3). Rule to remember: Significant influence is defined by the nature of the power, not by a percentage (IAS 28, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"It equates significant influence with the power to decide alone, whereas it consists of participating in decisions without controlling them; deciding alone would be control.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It confuses significant influence and the equity method: significant influence is a method of accounting for the investment.","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence is a power, not a method: the equity method is the method that then accounts for the investment (IAS 28, para. 3). Rule to remember: Do not confuse the situation (significant influence) and the method (equity method) (IAS 28, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000009","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS28.000001","tested_point":"VG.IAS28.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-presumption"},"references":["IAS 28 §5"],"exercise":{"prompt":{"fr":"","en":"If the investor holds, directly or indirectly, 20% or more of the voting power of the investee, significant influence is presumed, unless it can be clearly demonstrated that this is not the case.","es":""},"explanation":{"fr":"","en":"If the investor holds, directly or indirectly (for example through subsidiaries), 20% or more of the voting power of the investee, significant influence is presumed, unless it can be clearly demonstrated that this is not the case; below 20%, it is presumed absent, unless the contrary can be demonstrated (IAS 28, para. 5). Trap: Applying 20% as an automatic threshold of significant influence. Rule to remember: 20% creates a rebuttable presumption, not an automatic threshold (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Applying 20% as an automatic threshold of significant influence.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000010","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"APPLICATION","context":"V1_VG.IAS28.000001","tested_point":"VG.IAS28.000001","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-presumption"},"references":["IAS 28 §5"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 22% of the voting power of Brise SA. Case convention: the facts clearly demonstrate that Alba has no ability to participate in Brise's financial and operating policy decisions. What is concluded about significant influence?","es":""},"explanation":{"fr":"","en":"If the investor holds 20% or more of the voting power, significant influence is presumed, unless it can be clearly demonstrated that this is not the case (IAS 28, para. 5). The case facts provide that demonstration: the presumption is overturned and Alba has no significant influence over Brise. Trap: Applying 20% as an automatic threshold of significant influence. Rule to remember: The 20% presumption is rebutted by a clear demonstration (IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Applying 20% as an automatic threshold of significant influence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Significant influence is established irrebuttably from 20%: the 22% holding prevails over any demonstration to the contrary.","es":""},"correct":false,"feedback":{"fr":"","en":"The 20% presumption is rebuttable: it applies \"unless it can be clearly demonstrated\" otherwise (IAS 28, para. 5). Here, the facts given provide that demonstration. Rule to remember: A clear demonstration overturns the 20% presumption (IAS 28, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"Significant influence is presumed absent: above 20%, the presumption works in the opposite direction from the one that applies below that percentage.","es":""},"correct":false,"feedback":{"fr":"","en":"From 20%, it is significant influence that is presumed, not its absence; it is below 20% that absence is presumed (IAS 28, para. 5). Rule to remember: Above 20%, presumption of influence; below, presumption of absence (IAS 28, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"The presumption of significant influence attached to 20% or more is rebutted by this clear demonstration: Alba has no significant influence.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The conclusion depends on the percentage of voting rights taken in isolation: 22% exceeds 20%, which is enough to conclude that there is significant influence.","es":""},"correct":false,"feedback":{"fr":"","en":"The percentage creates a presumption, not a conclusion: a clear demonstration to the contrary prevails, and the other facts of the case remain to be examined (IAS 28, para. 5). Rule to remember: The percentage alone does not settle the matter (IAS 28, para. 5).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS28.000012","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000012","tested_point":"QST.IAS28.000012","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-indicators"},"references":["IAS 28 §6"],"exercise":{"prompt":{"fr":"","en":"Which of these are indications of significant influence? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The existence of significant influence is usually evidenced by one or more indications: representation on the board of directors, participation in policy-making processes (including dividends), material transactions with the investee, interchange of managerial personnel, provision of essential technical information (IAS 28, para. 6). Trap: Concluding from a single indication without examining all the facts. Rule to remember: The indications of significant influence relate to actual participation in decisions (IAS 28, para. 6).","es":""},"common_error":{"fr":"","en":"Concluding from a single indication without examining all the facts.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Interchange of managerial personnel between the investor and the investee.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fact that the investor and the investee have the same main bank.","es":""},"correct":false,"feedback":{"fr":"","en":"Having the same main bank is not among the indications of significant influence: board representation, participation in decisions, material transactions, interchange of managerial personnel and provision of essential technical information are cited (IAS 28, para. 6). Rule to remember: A common banking provider is not an indication (IAS 28, para. 6).","es":""}},{"id":"C","text":{"fr":"","en":"The fact that the investee is established in the same country as the investor.","es":""},"correct":false,"feedback":{"fr":"","en":"Establishment in the same country is not an indication of significant influence: the indications are board representation, participation in decisions, material transactions, interchange of managerial personnel and provision of technical information (IAS 28, para. 6). Rule to remember: A geographical link is not an indication (IAS 28, para. 6).","es":""}},{"id":"D","text":{"fr":"","en":"Representation on the board of directors of the investee.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Material transactions with the investee.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000013","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.INDICATORS"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000013","tested_point":"QST.IAS28.000013","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-indicators"},"references":["IAS 28 §6"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 15% of Brise SA. It has a director on Brise's board, enters into material transactions with Brise and provides it with essential technical information (case data). What can be said about Alba's significant influence?","es":""},"explanation":{"fr":"","en":"The existence of significant influence is usually evidenced by one or more indications: representation on the board of directors, material transactions with the investee, provision of essential technical information (IAS 28, para. 6). Three indications are given by the case; the conclusion remains a judgement on all the facts. Trap: Concluding from a single indication without examining all the facts. Rule to remember: The indications are assessed together in judging significant influence (IAS 28, para. 6).","es":""},"common_error":{"fr":"","en":"Concluding from a single indication without examining all the facts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"These facts are indications of significant influence; the conclusion rests on all the facts and circumstances.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Significant influence is ruled out below 20% of the voting rights, whatever the links between the two companies and the facts of the case.","es":""},"correct":false,"feedback":{"fr":"","en":"The percentage is not the only element: significant influence is evidenced by indications, and the percentage of voting rights does not rule them out (IAS 28, para. 6). Rule to remember: Indications complete, or even overturn, the reading of the percentage (IAS 28, para. 6).","es":""}},{"id":"C","text":{"fr":"","en":"Significant influence is established as soon as a director sits on the board, the other facts of the case being irrelevant to the analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"An isolated indication does not settle the matter: significant influence is evidenced by one or more indications assessed together (IAS 28, para. 6). Rule to remember: All the facts are examined, not a single indication (IAS 28, para. 6).","es":""}},{"id":"D","text":{"fr":"","en":"Significant influence requires all the indications to be present; the absence of an interchange of managerial personnel rules it out.","es":""},"correct":false,"feedback":{"fr":"","en":"The indications are cited as capable of evidencing significant influence, one or more being enough: they are not all required (IAS 28, para. 6). Rule to remember: One or more indications may be enough (IAS 28, para. 6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000015","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.POTENTIAL_VOTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000015","tested_point":"QST.IAS28.000015","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-potential"},"references":["IAS 28 §7","IAS 28 §8"],"exercise":{"prompt":{"fr":"","en":"In assessing significant influence, the entity takes account of its management's intention to exercise a call option and of its financial ability to do so.","es":""},"explanation":{"fr":"","en":"Warrants, call options and convertible instruments may give the investor additional voting power or reduce another party's voting power (IAS 28, paras. 7 and 8). In assessing influence, the entity considers the rights currently exercisable or convertible and the exercise terms, but not management's intention or the financial ability to exercise or convert. Trap: Taking account of management's intention to exercise an option. Rule to remember: Management's intention and financial ability are left out of the assessment (IAS 28, paras. 7 and 8).","es":""},"common_error":{"fr":"","en":"Taking account of management's intention to exercise an option in assessing influence.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000016","standard_id":"IAS28","concept_ids":["IAS28.INFLUENCE.POTENTIAL_VOTING"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000016","tested_point":"QST.IAS28.000016","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-potential"},"references":["IAS 28 §7","IAS 28 §8"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 15% of the voting rights of Brise SA and warrants, currently exercisable, that would give it a further 10 points. Alba's management has no intention of exercising them and lacks the necessary funds (case data). How do these warrants enter the assessment of significant influence?","es":""},"explanation":{"fr":"","en":"Warrants and similar instruments may give the investor additional voting power (IAS 28, paras. 7 and 8). In assessing influence, the entity considers the potential voting rights currently exercisable or convertible, examining the facts and circumstances, but not management's intention or its financial ability to exercise or convert. Here the warrants are exercisable: they enter the analysis. Trap: Taking account of management's intention to exercise an option. Rule to remember: Currently exercisable rights count, regardless of intentions (IAS 28, paras. 7 and 8).","es":""},"common_error":{"fr":"","en":"Taking account of management's intention to exercise an option in assessing influence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are ignored, management having neither the intention to exercise them nor the funds to do so, which deprives them of any effect on influence.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's intention and financial ability are not criteria: a currently exercisable right counts even if management does not wish or is unable to exercise it (IAS 28, paras. 7 and 8). Rule to remember: Rights are judged on their terms, not on willingness (IAS 28, paras. 7 and 8).","es":""}},{"id":"B","text":{"fr":"","en":"They are taken into account where Alba's management intends to exercise them and has the necessary funds to do so.","es":""},"correct":false,"feedback":{"fr":"","en":"Making their inclusion depend on intention and funds means retaining exactly what the assessment leaves out (IAS 28, paras. 7 and 8). Rule to remember: Intention and financial ability are excluded (IAS 28, paras. 7 and 8).","es":""}},{"id":"C","text":{"fr":"","en":"They are counted at their nominal amount as voting rights already exercised, without examining their exercise terms.","es":""},"correct":false,"feedback":{"fr":"","en":"Potential rights are not counted as exercised automatically: the facts and circumstances are examined, including exercise or conversion terms (IAS 28, paras. 7 and 8). Rule to remember: An examination of the terms comes before inclusion (IAS 28, paras. 7 and 8).","es":""}},{"id":"D","text":{"fr":"","en":"They are taken into account because they are currently exercisable; management's intention and financial ability are left out of the assessment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000018","standard_id":"IAS28","concept_ids":["IAS28.EM.INITIAL_COST"],"dimension":"CALCULATION","context":"V1_QST.IAS28.000018","tested_point":"QST.IAS28.000018","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"rule-cost"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Alba SA acquires {ownership} of Brise SA. At the acquisition date, the fair value of Brise's identifiable net assets (identifiable assets and liabilities) is {identifiable_net_assets}. Calculate Alba's share of the net fair value of Brise's identifiable assets and liabilities.","es":""},"explanation":{"fr":"","en":"Method: 4,000,000 × 30% = 1,200,000. The difference between the cost of the investment and this share of the net fair value of the identifiable assets and liabilities is goodwill if positive, or income if negative (IAS 28, para. 32). Trap: Comparing the cost with the share of carrying amounts rather than of fair values. Rule to remember: Goodwill is measured against the share of net fair values (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Comparing the cost with the share of carrying amounts rather than of fair values.","es":""},"format":"CALCULATION","placeholders":[{"id":"ownership","value":"30","unit":"PERCENT"},{"id":"identifiable_net_assets","value":"4000000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Investor's percentage","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Fair value of identifiable net assets","es":""},"value":"4000000","unit":"EUR"}],"steps":[{"id":"SHARE_OF_NET_ASSETS","label":{"fr":"","en":"Share of the net fair value","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"SHARE_OF_NET_ASSETS","meaning":{"fr":"","en":"Share of the net fair value","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of identifiable net assets","es":""},"value":4000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Investor's percentage","es":""},"value":30,"unit":"PERCENT"}],"result":1200000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill is measured against the share of net fair values (IAS 28, para. 32).","es":""},"references":["REF.IAS28.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000019","standard_id":"IAS28","concept_ids":["IAS28.EM.INITIAL_COST"],"dimension":"ANALYSIS","context":"V1_QST.IAS28.000019","tested_point":"QST.IAS28.000019","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"rule-cost"},"references":["IAS 28 §10","IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Alba SA acquires an interest in Brise SA, an associate, for 1,500,000. A colleague records the investment at 1,200,000, i.e. its share of the carrying amount of Brise's equity. What is the error?","es":""},"explanation":{"fr":"","en":"The investment is initially recognised at cost, 1,500,000, then its carrying amount is increased or decreased by the investor's share of the investee's profit or loss after the acquisition (IAS 28, para. 10). The colleague started from the share of the carrying amount of equity, which removes 300,000 from the entry value. Trap: Recognising the investment at the share of the carrying amount of the associate's equity. Rule to remember: Start from cost, not from the share of carrying amount (IAS 28, para. 10).","es":""},"common_error":{"fr":"","en":"Recognising the investment at the share of the carrying amount of the associate's equity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should have recorded the investment at fair value at the next reporting date, with no reference to the cost paid on acquiring the interest.","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method does not start from fair value at the reporting date: the investment is initially recognised at cost (IAS 28, para. 10). Rule to remember: The starting point is the cost paid (IAS 28, para. 10).","es":""}},{"id":"B","text":{"fr":"","en":"It should have recorded the investment at cost, 1,500,000; the equity method starts from cost and is then adjusted for the investor's share.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is right on the amount, but it should have taken the difference of 300,000 to expense in the period of acquisition of the interest.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of 1,200,000 is not right: the difference from cost is not an expense, it forms part of the carrying amount of the investment, which starts from cost (IAS 28, para. 10). Rule to remember: No expense on the difference between cost and share of carrying amount (IAS 28, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"It should have recorded 1,200,000 for the net assets and presented separately a goodwill of 300,000, amortised over its useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"An associate's goodwill is neither presented separately nor amortised: it is included in the carrying amount of the investment (IAS 28, para. 32). Rule to remember: An associate's goodwill stays within the carrying amount of the investment (IAS 28, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000020","standard_id":"IAS28","concept_ids":["IAS28.EM.SHARE_PROFIT_OCI"],"dimension":"CALCULATION","context":"V1_QST.IAS28.000020","tested_point":"QST.IAS28.000020","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"rule-share"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds {ownership} of Brise SA, an associate. Brise reports a profit of {associate_profit} after the acquisition. Case convention: no fair value adjustment, no difference in policies and no intragroup elimination. Calculate Alba's share of profit.","es":""},"explanation":{"fr":"","en":"Method: 450,000 × 30% = 135,000. The carrying amount of the investment is increased by the investor's share of the investee's profit after the acquisition (IAS 28, para. 10). Any adjustments (fair value, policies) are excluded by the case convention. Trap: Applying the percentage to profit before the necessary adjustments. Rule to remember: Share of profit = percentage × adjusted profit (IAS 28, para. 10).","es":""},"common_error":{"fr":"","en":"Applying the percentage to profit before fair value and policy adjustments.","es":""},"format":"CALCULATION","placeholders":[{"id":"ownership","value":"30","unit":"PERCENT"},{"id":"associate_profit","value":"450000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Investor's percentage","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Profit of the associate","es":""},"value":"450000","unit":"EUR"}],"steps":[{"id":"SHARE_OF_PROFIT","label":{"fr":"","en":"Investor's share of profit","es":""},"answer":135000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"SHARE_OF_PROFIT","meaning":{"fr":"","en":"Investor's share of profit","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit of the associate","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Investor's percentage","es":""},"value":30,"unit":"PERCENT"}],"result":135000,"unit":"EUR"}],"rationale":{"fr":"","en":"Share of profit = percentage × adjusted profit (IAS 28, para. 10).","es":""},"references":["REF.IAS28.10"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000023","standard_id":"IAS28","concept_ids":["IAS28.EM.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000023","tested_point":"QST.IAS28.000023","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"rule-dividends"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"Dividends received from an associate accounted for under the equity method are recognised as income by the investor.","es":""},"explanation":{"fr":"","en":"Under the equity method, distributions received reduce the carrying amount of the investment (IAS 28, para. 10): the investor has already recognised its share of the associate's profit, and the dividend is merely the cash counterpart. Trap: Recognising the associate's dividends as income. Rule to remember: An associate's dividend reduces the investment; it is not income (IAS 28, para. 10).","es":""},"common_error":{"fr":"","en":"Recognising the associate's dividends as income.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000025","standard_id":"IAS28","concept_ids":["IAS28.EM.DIVIDENDS"],"dimension":"CALCULATION","context":"V1_QST.IAS28.000025","tested_point":"QST.IAS28.000025","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000004","section_id":"rule-dividends"},"references":["IAS 28 §10"],"exercise":{"prompt":{"fr":"","en":"The carrying amount of Alba SA's interest in Brise SA, an associate accounted for under the equity method, is {opening_carrying} at the start of the year. During the year, Alba's share of Brise's profit is {share_of_profit}, its share of other comprehensive income is {share_of_oci}, and Alba receives {dividends_received} in dividends. Case convention: no impairment and no other movement. Calculate the closing carrying amount.","es":""},"explanation":{"fr":"","en":"Method: 1,500,000 + 120,000 + 15,000 − 60,000 = 1,575,000. The carrying amount is increased by the share of profit, adjusted for the share of other comprehensive income, and reduced by distributions received (IAS 28, para. 10). Trap: Recognising the associate's dividends as income instead of deducting them from the carrying amount. Rule to remember: Closing amount = opening + profit + other comprehensive income − dividends (IAS 28, para. 10).","es":""},"common_error":{"fr":"","en":"Recognising the associate's dividends as income.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying","value":"1500000","unit":"EUR"},{"id":"share_of_profit","value":"120000","unit":"EUR"},{"id":"share_of_oci","value":"15000","unit":"EUR"},{"id":"dividends_received","value":"60000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount at the start of the year","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Share of profit","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Share of other comprehensive income","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Dividends received","es":""},"value":"60000","unit":"EUR"}],"steps":[{"id":"CLOSING_CARRYING","label":{"fr":"","en":"Closing carrying amount","es":""},"answer":1575000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_CARRYING","meaning":{"fr":"","en":"Closing carrying amount","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at the start of the year","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of profit","es":""},"value":120000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Share of other comprehensive income","es":""},"value":15000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Dividends received","es":""},"value":60000,"unit":"EUR"}],"result":1575000,"unit":"EUR"}],"rationale":{"fr":"","en":"Closing amount = opening + profit + other comprehensive income − dividends (IAS 28, para. 10).","es":""},"references":["REF.IAS28.10"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000026","standard_id":"IAS28","concept_ids":["IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"CALCULATION","context":"V1_VG.IAS28.000002","tested_point":"VG.IAS28.000002","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"rule-goodwill"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Alba SA acquires {ownership} of Brise SA, an associate, for {investment_cost}. At the acquisition date, the fair value of Brise's identifiable net assets is {identifiable_net_assets}. Calculate the goodwill included in the carrying amount of the investment (income would be shown with a minus sign).","es":""},"explanation":{"fr":"","en":"Method: share of net fair values 6,400,000 × 25% = 1,600,000; difference 2,000,000 − 1,600,000 = 400,000. The difference between cost and the share is goodwill if positive: it is included in the carrying amount of the investment, not amortised and not presented separately (IAS 28, para. 32). Trap: Presenting an associate's goodwill separately and amortising it. Rule to remember: An associate's goodwill stays within the carrying amount of the investment (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Presenting an associate's goodwill separately and amortising it.","es":""},"format":"CALCULATION","placeholders":[{"id":"investment_cost","value":"2000000","unit":"EUR"},{"id":"ownership","value":"25","unit":"PERCENT"},{"id":"identifiable_net_assets","value":"6400000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the investment","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Investor's percentage","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Fair value of identifiable net assets","es":""},"value":"6400000","unit":"EUR"}],"steps":[{"id":"GOODWILL","label":{"fr":"","en":"Goodwill of the investment","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL","meaning":{"fr":"","en":"Goodwill of the investment","es":""},"expression":"a - (b * c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the investment","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of identifiable net assets","es":""},"value":6400000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Investor's percentage","es":""},"value":25,"unit":"PERCENT"}],"result":400000,"unit":"EUR"}],"rationale":{"fr":"","en":"An associate's goodwill stays within the carrying amount of the investment (IAS 28, para. 32).","es":""},"references":["REF.IAS28.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000028","standard_id":"IAS28","concept_ids":["IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000028","tested_point":"QST.IAS28.000028","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"rule-goodwill"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"The goodwill included in the cost of an associate is neither amortised nor presented separately: it forms part of the carrying amount of the investment.","es":""},"explanation":{"fr":"","en":"The difference between the cost of the investment and the investor's share of the net fair value of the identifiable assets and liabilities is goodwill if positive; that goodwill is included in the carrying amount of the investment, not amortised and not presented separately (IAS 28, para. 32). Trap: Presenting an associate's goodwill separately and amortising it. Rule to remember: An associate's goodwill has neither its own line nor amortisation (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Presenting an associate's goodwill separately and amortising it.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000029","standard_id":"IAS28","concept_ids":["IAS28.EM.FAIR_VALUE_ADJUSTMENTS"],"dimension":"CALCULATION","context":"V1_QST.IAS28.000029","tested_point":"QST.IAS28.000029","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-fvadj"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"At the date Alba SA acquired Brise SA (an associate), the fair value of one of Brise's buildings exceeded its carrying amount by {fair_value_excess}. Case convention: the building is depreciated on a straight-line basis over its remaining useful life of {useful_life}, with no residual value. Calculate the additional annual depreciation to be taken into account in the share of profit (before applying Alba's percentage).","es":""},"explanation":{"fr":"","en":"Method: 500,000 ÷ 10 = 50,000 per year. The share of post-acquisition profit is adjusted for additional depreciation based on the excess of fair value at the acquisition date (IAS 28, para. 32); Alba's percentage is then applied to the profit so restated. Trap: Ignoring the additional depreciation on the fair value excess in the share of profit. Rule to remember: The fair value excess is depreciated and reduces the share of profit (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Ignoring the additional depreciation on the fair value excess in the share of profit.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value_excess","value":"500000","unit":"EUR"},{"id":"useful_life","value":"10","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Excess of the building's fair value at acquisition","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"10","unit":"YEARS"}],"steps":[{"id":"ANNUAL_DEPRECIATION","label":{"fr":"","en":"Additional annual depreciation","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_DEPRECIATION","meaning":{"fr":"","en":"Additional annual depreciation","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Excess of the building's fair value at acquisition","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":10,"unit":"YEARS"}],"result":50000,"unit":"EUR"}],"rationale":{"fr":"","en":"The fair value excess is depreciated and reduces the share of profit (IAS 28, para. 32).","es":""},"references":["REF.IAS28.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000030","standard_id":"IAS28","concept_ids":["IAS28.EM.FAIR_VALUE_ADJUSTMENTS"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000030","tested_point":"QST.IAS28.000030","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-fvadj"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 30% of Brise SA, an associate. Brise reports a profit of 400,000. At the acquisition date, a building of Brise had a fair value 500,000 above its carrying amount; it is depreciated on a straight-line basis over the remaining 10 years (case data). What share of profit does Alba recognise?","es":""},"explanation":{"fr":"","en":"Method: additional depreciation 500,000 ÷ 10 = 50,000; restated profit 400,000 − 50,000 = 350,000; share 350,000 × 30% = 105,000. The share of post-acquisition profit is adjusted for additional depreciation based on the excess of fair value at the acquisition date (IAS 28, para. 32). Trap: Applying the percentage to profit before fair value adjustments. Rule to remember: Share = percentage × profit restated for depreciation of the excess (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Applying the percentage to profit before fair value adjustments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"120,000, i.e. 30% of the profit of 400,000 with no adjustment for the fair value excess.","es":""},"correct":false,"feedback":{"fr":"","en":"120,000 ignores the additional depreciation on the fair value excess, which the share of post-acquisition profit must reflect (IAS 28, para. 32). Rule to remember: Restate the profit before applying the percentage (IAS 28, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"135,000, i.e. 30% of the profit of 400,000 increased by 50,000 of additional depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"135,000 adds the additional depreciation instead of deducting it: that depreciation reduces the restated profit (IAS 28, para. 32). Rule to remember: The additional depreciation is deducted (IAS 28, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"15,000, i.e. 30% of the additional depreciation of 50,000 taken in isolation, without taking Brise's profit into account.","es":""},"correct":false,"feedback":{"fr":"","en":"15,000 retains only 30% of the additional depreciation: the share relates to Brise's profit, adjusted for that depreciation (IAS 28, para. 32). Rule to remember: The percentage applies to the restated profit, not to the adjustment alone (IAS 28, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"105,000, i.e. 30% of the profit of 400,000 reduced by 50,000 of additional depreciation.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000031","standard_id":"IAS28","concept_ids":["IAS28.EM.FAIR_VALUE_ADJUSTMENTS"],"dimension":"ANALYSIS","context":"V1_QST.IAS28.000031","tested_point":"QST.IAS28.000031","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-fvadj"},"references":["IAS 28 §32"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 40% of Cime SA, an associate whose profit is 280,000. At acquisition, the fair value excess on an item of equipment was 240,000, with 8 years remaining. A colleague recognises a share of 112,000, i.e. 40% of 280,000. What is the error?","es":""},"explanation":{"fr":"","en":"The share of post-acquisition profit is adjusted for additional depreciation based on the fair value excess at the acquisition date (IAS 28, para. 32): 240,000 ÷ 8 = 30,000, restated profit 280,000 − 30,000 = 250,000, share 40% × 250,000 = 100,000, not 112,000. Trap: Ignoring the additional depreciation on the fair value excess in the share of profit. Rule to remember: Restate the profit for depreciation of the excess before applying the percentage (IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Ignoring the additional depreciation on the fair value excess in the share of profit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should have applied 40% to Cime's profit after deducting the dividends it paid, without regard to the fair value excess or the depreciation that follows from it.","es":""},"correct":false,"feedback":{"fr":"","en":"The dividends paid by Cime are not used to compute the share of profit: they reduce the carrying amount of the investment. The adjustment expected is the one for the fair value excess (IAS 28, para. 32). Rule to remember: The profit adjustment comes from the fair value excess, not from dividends (IAS 28, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"It ignores the additional depreciation on the fair value excess, i.e. 30,000 per year: the correct share is 40% × 250,000 = 100,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It should have added the additional depreciation of 30,000 to profit before applying 40%, giving a share of 124,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The additional depreciation is deducted from profit, not added to it: adding it would give 124,000 instead of 100,000 (IAS 28, para. 32). Rule to remember: Additional depreciation reduces the share (IAS 28, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"It should have put the whole fair value excess of 240,000 into the share for the year, without spreading it over the remaining life.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value excess is depreciated over the remaining useful life: only an annual fraction of 30,000 weighs on the share of each year (IAS 28, para. 32). Rule to remember: The excess is spread over the remaining life (IAS 28, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000032","standard_id":"IAS28","concept_ids":["IAS28.EM.UNIFORM_POLICIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000032","tested_point":"QST.IAS28.000032","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-policies"},"references":["IAS 28 §35"],"exercise":{"prompt":{"fr":"","en":"For the equity method, the associate's financial statements are prepared using uniform accounting policies for like transactions and events in similar circumstances.","es":""},"explanation":{"fr":"","en":"The financial statements of the associate or joint venture used for the equity method are prepared using uniform accounting policies for like transactions and events in similar circumstances (IAS 28, para. 35); if the associate applies other policies, its statements are adjusted before the equity method (IAS 28, para. 36). Trap: Equity-accounting the published amounts without harmonising the policies. Rule to remember: The associate's policies are aligned before the equity method is applied (IAS 28, para. 35).","es":""},"common_error":{"fr":"","en":"Equity-accounting the published amounts without harmonising the policies.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000034","standard_id":"IAS28","concept_ids":["IAS28.EM.REPORTING_DATES"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000034","tested_point":"QST.IAS28.000034","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000005","section_id":"rule-dates"},"references":["IAS 28 §33","IAS 28 §34"],"exercise":{"prompt":{"fr":"","en":"Brise SA, an associate of Alba SA, has a 30 November year end, while Alba's is 31 December. In December, Brise sold a major asset (case data). How does Alba treat Brise's statements for the equity method?","es":""},"explanation":{"fr":"","en":"The financial statements of the investee used for the equity method are prepared as of the same date as the investor's, unless impracticable; significant events between the two dates are adjusted (IAS 28, paras. 33 and 34). The sale of a major asset in December is such an event. Trap: Ignoring significant events between the associate's date and the investor's. Rule to remember: Same date, otherwise adjustment for significant intervening events (IAS 28, paras. 33 and 34).","es":""},"common_error":{"fr":"","en":"Ignoring significant events between the associate's date and the investor's.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It uses Brise's statements at 30 November without adjustment, the December sale belonging to Alba's following year.","es":""},"correct":false,"feedback":{"fr":"","en":"Not adjusting would ignore a significant event between the two dates: the text requires such events to be adjusted (IAS 28, paras. 33 and 34). Rule to remember: Significant events between the two dates are adjusted (IAS 28, paras. 33 and 34).","es":""}},{"id":"B","text":{"fr":"","en":"It suspends the equity method until Brise adopts a reporting date identical to its own.","es":""},"correct":false,"feedback":{"fr":"","en":"The text does not provide for suspending the equity method: it requires the same date or, failing that, adjustments for significant events (IAS 28, paras. 33 and 34). Rule to remember: A date gap is handled by adjustment, not by suspension (IAS 28, paras. 33 and 34).","es":""}},{"id":"C","text":{"fr":"","en":"It uses statements of Brise prepared as of Alba's reporting date or, failing that, adjusted for the effects of significant events between the two dates.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It adjusts Brise's events after 31 December, those of December already being part of Brise's own statements.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the significant events between the associate's date and the investor's date that are adjusted, hence those of December (IAS 28, paras. 33 and 34). Rule to remember: The period to cover is the one separating the two dates (IAS 28, paras. 33 and 34).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000036","standard_id":"IAS28","concept_ids":["IAS28.ELIM.UPSTREAM_DOWNSTREAM"],"dimension":"CALCULATION","context":"V1_VG.IAS28.000003","tested_point":"VG.IAS28.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-direction"},"references":["IAS 28 §28"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds {ownership} of Brise SA, an associate accounted for under the equity method. Brise sold goods to Alba (upstream transaction); at the reporting date, the inventory bought from Brise and still held by Alba contains an unrealised profit of {unrealised_profit} (case data). Calculate the unrealised profit that Alba's share leads it to eliminate.","es":""},"explanation":{"fr":"","en":"Method: 70,000 × 40% = 28,000. Profits and losses on upstream or downstream transactions are recognised in the investor's financial statements only to the extent of unrelated investors' interests in the associate; the investor's share of those profits or losses is eliminated (IAS 28, para. 28). Trap: Eliminating the whole unrealised profit instead of only the investor's share. Rule to remember: The investor's share of the unrealised profit is eliminated (IAS 28, para. 28).","es":""},"common_error":{"fr":"","en":"Eliminating the whole unrealised profit instead of only the investor's share.","es":""},"format":"CALCULATION","placeholders":[{"id":"ownership","value":"40","unit":"PERCENT"},{"id":"unrealised_profit","value":"70000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Investor's percentage","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Unrealised profit in remaining inventory","es":""},"value":"70000","unit":"EUR"}],"steps":[{"id":"PROFIT_ELIMINATED","label":{"fr":"","en":"Profit eliminated (investor's share)","es":""},"answer":28000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PROFIT_ELIMINATED","meaning":{"fr":"","en":"Profit eliminated (investor's share)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unrealised profit in remaining inventory","es":""},"value":70000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Investor's percentage","es":""},"value":40,"unit":"PERCENT"}],"result":28000,"unit":"EUR"}],"rationale":{"fr":"","en":"The investor's share of the unrealised profit is eliminated (IAS 28, para. 28).","es":""},"references":["REF.IAS28.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000039","standard_id":"IAS28","concept_ids":["IAS28.ELIM.IMPAIRMENT_INDICATOR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000039","tested_point":"QST.IAS28.000039","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-losses"},"references":["IAS 28 §29"],"exercise":{"prompt":{"fr":"","en":"When a downstream transaction provides evidence of a reduction in the net realisable value of the assets sold to the associate, or of an impairment of those assets, the investor recognises the related losses in full.","es":""},"explanation":{"fr":"","en":"When a transaction provides evidence of a reduction in the net realisable value of the assets or of an impairment of those assets, the losses are recognised in full by the investor for a downstream transaction; for an upstream transaction, the investor recognises its share of those losses (IAS 28, para. 29). Trap: Applying to a loss that reveals an impairment the same partial elimination as for an unrealised profit. Rule to remember: Loss revealing an impairment, downstream transaction: full recognition (IAS 28, para. 29).","es":""},"common_error":{"fr":"","en":"Applying to a loss that reveals an impairment the same partial elimination as for an unrealised profit.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000040","standard_id":"IAS28","concept_ids":["IAS28.ELIM.IMPAIRMENT_INDICATOR"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000040","tested_point":"QST.IAS28.000040","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-losses"},"references":["IAS 28 §29"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 40% of Brise SA, an associate. Brise sells Alba a batch of goods (upstream transaction). At the reporting date, the net realisable value of the batch is below its cost: the transaction reveals a reduction in value of those assets, for a loss of 100,000 (case data). What part of this loss does Alba recognise under IAS 28?","es":""},"explanation":{"fr":"","en":"For an upstream transaction that provides evidence of a reduction in the net realisable value or an impairment of the assets, the investor recognises its share of the loss (IAS 28, para. 29): 100,000 × 40% = 40,000. Trap: Recognising an upstream loss in full as if the transaction were downstream. Rule to remember: Upstream: share of the loss; downstream: full loss (IAS 28, para. 29).","es":""},"common_error":{"fr":"","en":"Recognising an upstream loss in full as if the transaction were downstream.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its share, i.e. 40,000, because the transaction is upstream.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The loss of 100,000 in full, as for a downstream transaction that reveals an impairment.","es":""},"correct":false,"feedback":{"fr":"","en":"Full recognition applies to a downstream transaction; here the transaction is upstream, Brise selling to Alba, and Alba recognises only its share of the loss (IAS 28, para. 29). Rule to remember: Upstream: share; downstream: full amount (IAS 28, para. 29).","es":""}},{"id":"C","text":{"fr":"","en":"The share of Brise's other investors, i.e. 60,000, because that share is the one realised with third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"The share recognised is the investor's, not that of the associate's other shareholders: 40% of 100,000, i.e. 40,000 (IAS 28, para. 29). Rule to remember: The investor recognises its own share of the loss (IAS 28, para. 29).","es":""}},{"id":"D","text":{"fr":"","en":"No amount at this stage: the loss is deferred until the batch is resold to a customer outside the group.","es":""},"correct":false,"feedback":{"fr":"","en":"A loss that reveals a reduction in value is not deferred: the investor recognises its share of it when the transaction is upstream (IAS 28, para. 29). Rule to remember: A loss revealing an impairment is not deferred (IAS 28, para. 29).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000042","standard_id":"IAS28","concept_ids":["IAS28.ELIM.CONTRIBUTION_NON_MONETARY"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000042","tested_point":"QST.IAS28.000042","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-contribution"},"references":["IAS 28 §30"],"exercise":{"prompt":{"fr":"","en":"Alba SA contributes to Brise SA, its associate, land that does not constitute a business, in exchange for an interest in Brise. What principle governs the treatment of the gain or loss on that contribution in Alba's financial statements?","es":""},"explanation":{"fr":"","en":"For the contribution of non-monetary assets that do not constitute a business to an associate in exchange for an interest, the gain or loss is treated under para. 28 (IAS 28, para. 30): it is recognised only to the extent of unrelated investors' interests in the associate. Trap: Accounting for the gain on a contribution to an associate like that on a sale to a third party. Rule to remember: The contribution of non-monetary assets follows the treatment of para. 28 (IAS 28, para. 30).","es":""},"common_error":{"fr":"","en":"Accounting for the gain on a contribution to an associate like that on a sale to a third party.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is treated like other transactions between the investor and the associate: the gain or loss is recognised only to the extent of unrelated investors' interests.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is recognised in profit or loss for the total amount at the date of contribution, an exchange of land for an interest being an ordinary sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The contribution is not an ordinary sale giving rise to a complete gain: the gain or loss is treated under para. 28, so limited to unrelated investors' interests (IAS 28, para. 30). Rule to remember: The contribution follows the treatment of para. 28 (IAS 28, para. 30).","es":""}},{"id":"C","text":{"fr":"","en":"It is deferred in full in the statement of financial position until the interest in Brise is sold, whatever the share held by third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferral in full does not match the rule: the treatment refers to para. 28, which recognises the gain or loss to the extent of unrelated investors' interests (IAS 28, para. 30). Rule to remember: A part is recognised, that of unrelated investors (IAS 28, para. 30).","es":""}},{"id":"D","text":{"fr":"","en":"It is recognised in other comprehensive income, then reclassified to profit or loss on the sale of the interest in Brise.","es":""},"correct":false,"feedback":{"fr":"","en":"The gain or loss on a contribution is not presented in other comprehensive income: it is treated under para. 28 (IAS 28, para. 30). Rule to remember: The cross-reference points to the treatment of para. 28 (IAS 28, para. 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000043","standard_id":"IAS28","concept_ids":["IAS28.ELIM.CONTRIBUTION_NON_MONETARY"],"dimension":"ANALYSIS","context":"V1_QST.IAS28.000043","tested_point":"QST.IAS28.000043","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-contribution"},"references":["IAS 28 §30"],"exercise":{"prompt":{"fr":"","en":"Alba SA contributes to Brise SA, its associate, machines that do not constitute a business, in exchange for a 25% interest in Brise. A colleague recognises the 200,000 gain on that contribution in profit or loss with no elimination at all. What is the error?","es":""},"explanation":{"fr":"","en":"For the contribution of non-monetary assets that do not constitute a business to an associate in exchange for an interest, the gain or loss is treated under para. 28 (IAS 28, para. 30): only the part corresponding to unrelated investors' interests is recognised. The colleague omitted the elimination of Alba's share. Trap: Accounting for the gain on a contribution to an associate like that on a sale to a third party. Rule to remember: The gain on a contribution follows the treatment of para. 28 (IAS 28, para. 30).","es":""},"common_error":{"fr":"","en":"Accounting for the gain on a contribution to an associate like that on a sale to a third party.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The gain is correct, but it should have been presented as part of the share of profit of the associate rather than in Alba's own profit or loss, keeping the amount of 200,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount cannot be justified: the gain on the contribution is treated under para. 28, so partly recognised, and not simply reclassified as share of profit of the associate (IAS 28, para. 30). Rule to remember: The gain on a contribution follows the treatment of para. 28 (IAS 28, para. 30).","es":""}},{"id":"B","text":{"fr":"","en":"The gain should have been recorded directly in Alba's equity, without going through profit or loss, like any transaction with an associate.","es":""},"correct":false,"feedback":{"fr":"","en":"The gain is not recorded directly in equity: it is treated under para. 28, with an elimination of the investor's share (IAS 28, para. 30). Rule to remember: No bypassing of profit or loss; elimination under para. 28 (IAS 28, para. 30).","es":""}},{"id":"C","text":{"fr":"","en":"The gain follows the treatment of para. 28: it is recognised only to the extent of unrelated investors' interests, and Alba's share is eliminated.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The gain should have been deferred in full as long as Alba holds the interest, whatever the share of Brise's other investors.","es":""},"correct":false,"feedback":{"fr":"","en":"The gain is not deferred in full: the part corresponding to unrelated investors' interests is recognised, the investor's part being eliminated under para. 28 (IAS 28, para. 30). Rule to remember: Part of the gain stays recognised (IAS 28, para. 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000044","standard_id":"IAS28","concept_ids":["IAS28.ELIM.SALE_BUSINESS_AMENDMENT","IAS28.ELIM.UPSTREAM_DOWNSTREAM"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000044","tested_point":"QST.IAS28.000044","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000006","section_id":"rule-direction"},"references":["IAS 28 §28","IAS 28"],"exercise":{"prompt":{"fr":"","en":"What should be remembered about the 2014 amendments to IAS 28 on the sale or contribution of assets between an investor and its associate or joint venture?","es":""},"explanation":{"fr":"","en":"The 2014 amendments provide, on the sale or contribution of assets between an investor and its associate or joint venture, for a full gain or loss when the transaction involves a business and a partial one otherwise; their effective date was postponed indefinitely in December 2015, the question being referred to the research project on the equity method. In the meantime, the treatment by the investor's share described in para. 28 is the one to know (IAS 28, para. 28). Trap: Applying as a rule in force an amendment whose effective date is postponed indefinitely. Rule to remember: The 2014 amendments are not in force (IAS 28, para. 28).","es":""},"common_error":{"fr":"","en":"Applying as a rule in force an amendment whose effective date is postponed indefinitely.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They apply from their publication and replace the treatment by the investor's share described in para. 28, whether or not the assets constitute a business.","es":""},"correct":false,"feedback":{"fr":"","en":"The amendments do not apply from their publication: their effective date was postponed indefinitely, and the treatment of para. 28 remains the reference in the meantime (IAS 28, para. 28). Rule to remember: An amendment postponed indefinitely is not in force (IAS 28, para. 28).","es":""}},{"id":"B","text":{"fr":"","en":"They provide for a full gain or loss for a business and a partial one otherwise, but their effective date was postponed indefinitely in December 2015.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They provide for a partial gain or loss in all cases, including when the transaction involves a business, and are already in force.","es":""},"correct":false,"feedback":{"fr":"","en":"The gain is not partial in all cases: the amendments distinguish a business (full gain or loss) from other assets (partial), and they are not in force (IAS 28, para. 28). Rule to remember: Business: full; otherwise: partial; effective date postponed (IAS 28, para. 28).","es":""}},{"id":"D","text":{"fr":"","en":"They provide for a full gain or loss for assets that do not constitute a business, and have been in force since December 2015.","es":""},"correct":false,"feedback":{"fr":"","en":"The full gain concerns a business, not assets that do not constitute one, and the effective date was postponed indefinitely (IAS 28, para. 28). Rule to remember: The full gain targets the transaction involving a business (IAS 28, para. 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000045","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.BEYOND_INTEREST"],"dimension":"CALCULATION","context":"V1_VG.IAS28.000004","tested_point":"VG.IAS28.000004","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-cap"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"Alba SA applies the equity method to Brise SA, an associate. At the reporting date, the carrying amount of the investment is {remaining_interest}, and Alba has no other interest in Brise. Its share of the losses for the year is {share_of_loss}. Calculate the share of losses recognised and the share that is not recognised.","es":""},"explanation":{"fr":"","en":"Method: the share recognised is the lower of 350,000 and 280,000, i.e. 280,000; the share not recognised is 350,000 − 280,000 = 70,000. When the investor's share of losses equals or exceeds its interest in the associate, it discontinues recognising its share of further losses (IAS 28, para. 38). Trap: Recognising the whole share of losses, which would make the investment negative. Rule to remember: The share of losses recognised is capped at the investor's interest (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Recognising the whole share of losses, which would make the investment negative.","es":""},"format":"CALCULATION","placeholders":[{"id":"remaining_interest","value":"280000","unit":"EUR"},{"id":"share_of_loss","value":"350000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Investor's interest in the associate","es":""},"value":"280000","unit":"EUR"},{"label":{"fr":"","en":"Share of losses for the year","es":""},"value":"350000","unit":"EUR"}],"steps":[{"id":"LOSS_RECOGNISED","label":{"fr":"","en":"Share of losses recognised","es":""},"answer":280000,"tolerance":0,"unit":"EUR"},{"id":"UNRECOGNISED_LOSSES","label":{"fr":"","en":"Share of losses not recognised","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"UNRECOGNISED_LOSSES","meaning":{"fr":"","en":"Share of losses not recognised","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Share of losses for the year","es":""},"value":350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Investor's interest in the associate","es":""},"value":280000,"unit":"EUR"}],"result":70000,"unit":"EUR"}],"rationale":{"fr":"","en":"The share of losses recognised is capped at the investor's interest (IAS 28, para. 38).","es":""},"references":["REF.IAS28.38"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000047","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.BEYOND_INTEREST"],"dimension":"ANALYSIS","context":"V1_QST.IAS28.000047","tested_point":"QST.IAS28.000047","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-cap"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"Alba SA has reduced its interest in Brise, an associate, to zero after several years of losses; it has no long-term interest in Brise and no commitment towards it. A colleague nevertheless recognises a further share of losses of 90,000 and presents a negative investment. What is the error?","es":""},"explanation":{"fr":"","en":"When the investor's share of losses equals or exceeds its interest in the associate, it discontinues recognising its share of further losses (IAS 28, para. 38). The interest being already nil, the share of 90,000 is not recognised and the investment is not negative. Trap: Recognising the whole share of losses, which would make the investment negative. Rule to remember: The share of losses recognised is capped at the investor's interest (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Recognising the whole share of losses, which would make the investment negative.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The loss should have been recognised in other comprehensive income rather than in profit or loss for the year, so as to protect profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The share of losses does not move to other comprehensive income: the problem is recognising a loss beyond the investor's interest, which the rule stops (IAS 28, para. 38). Rule to remember: Beyond the interest, the share of losses is no longer recognised (IAS 28, para. 38).","es":""}},{"id":"B","text":{"fr":"","en":"The loss should have been converted into a provision for risks of 90,000, out of prudence, in Alba's statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule does not require a provision out of prudence: once the interest is reached, the investor discontinues recognising its share of further losses (IAS 28, para. 38). Rule to remember: No loss recognised beyond the interest (IAS 28, para. 38).","es":""}},{"id":"C","text":{"fr":"","en":"The remaining interest should have been reclassified as a financial asset measured under IFRS 9, then the loss recognised on that asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification as a financial asset is not provided for while significant influence remains: the equity method continues, with the share of losses capped at the interest (IAS 28, para. 38). Rule to remember: The equity method continues, the loss is capped (IAS 28, para. 38).","es":""}},{"id":"D","text":{"fr":"","en":"As soon as its share of losses equals or exceeds its interest, the investor discontinues recognising its share of further losses.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000048","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.LONG_TERM_INTERESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000048","tested_point":"QST.IAS28.000048","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-cap"},"references":["IAS 28 §38"],"exercise":{"prompt":{"fr":"","en":"Under IAS 28, which statements about the investor's interest in the associate, which caps the share of losses recognised, are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The investor's interest includes the carrying amount of the equity-accounted investment and the long-term interests that, in substance, form part of the net investment (long-term receivables or loans, excluding trade receivables); excess losses are allocated to the other components in the reverse order of their seniority (IAS 28, para. 38). Trap: Treating a trade receivable as a long-term interest that absorbs losses. Rule to remember: The interest includes the investment and long-term loans in substance, excluding trade receivables (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Treating a trade receivable as a long-term interest that absorbs losses.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The interest includes the carrying amount of the equity-accounted investment.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Excess losses are allocated to the other components of the interest in the reverse order of their seniority.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Excess losses are allocated first to the most senior components of the interest, before the most subordinated ones.","es":""},"correct":false,"feedback":{"fr":"","en":"The order of allocation is the reverse: excess losses are allocated in the reverse order of the seniority of the components, so first to the most subordinated (IAS 28, para. 38). Rule to remember: Allocation in the reverse order of seniority (IAS 28, para. 38).","es":""}},{"id":"D","text":{"fr":"","en":"The investor's trade receivables from the associate form part of the interest, in the same way as a long-term loan.","es":""},"correct":false,"feedback":{"fr":"","en":"Trade receivables are excluded from the interest: only long-term receivables or loans that form part, in substance, of the net investment are included (IAS 28, para. 38). Rule to remember: Trade receivables are not part of the interest (IAS 28, para. 38).","es":""}},{"id":"E","text":{"fr":"","en":"The interest also includes long-term receivables or loans that, in substance, form part of the net investment in the associate.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000050","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000050","tested_point":"QST.IAS28.000050","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-liability"},"references":["IAS 28 §39"],"exercise":{"prompt":{"fr":"","en":"Once the investor's interest in the associate has been reduced to zero, a liability is recognised for additional losses only to the extent that the investor has a legal or constructive obligation, or has made payments on behalf of the associate.","es":""},"explanation":{"fr":"","en":"Once the interest is reduced to zero, additional losses are provided for and a liability is recognised only to the extent that the investor has a legal or constructive obligation or has made payments on behalf of the associate (IAS 28, para. 39). Trap: Providing for the associate's losses beyond the interest with no obligation or payment. Rule to remember: No liability beyond the interest without an obligation or a payment on behalf of the associate (IAS 28, para. 39).","es":""},"common_error":{"fr":"","en":"Providing for the associate's losses beyond the interest with no obligation or payment.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000051","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.LIABILITY"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000051","tested_point":"QST.IAS28.000051","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-liability"},"references":["IAS 28 §39"],"exercise":{"prompt":{"fr":"","en":"Alba SA has reduced its interest in Brise, an associate, to zero. Alba has legally undertaken to guarantee a loan of Brise. Its share of the additional losses for the year is 60,000, and the bank has called the guarantee: Alba paid 25,000 on behalf of Brise. What can Alba recognise in respect of these additional losses?","es":""},"explanation":{"fr":"","en":"Once the interest is reduced to zero, additional losses are provided for and a liability is recognised only to the extent that the investor has a legal or constructive obligation or has made payments on behalf of the associate (IAS 28, para. 39). Here, the legal guarantee and the payment of 25,000 are items that justify a liability, not the whole share of 60,000. Trap: Providing for the associate's losses beyond the interest with no obligation or payment. Rule to remember: The liability follows the obligation or payment, not the share of losses (IAS 28, para. 39).","es":""},"common_error":{"fr":"","en":"Providing for the associate's losses beyond the interest with no obligation or payment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A liability of 60,000, because the equity method requires the share of losses for the year to be recognised in full, even beyond the interest.","es":""},"correct":false,"feedback":{"fr":"","en":"The share of 60,000 is not recognised in full: beyond the interest, a liability arises only from a legal or constructive obligation or from payments on behalf of the associate (IAS 28, para. 39). Rule to remember: The liability follows the obligation, not the share of losses (IAS 28, para. 39).","es":""}},{"id":"B","text":{"fr":"","en":"A liability to the extent of its legal obligation and of the payments made on behalf of Brise, and not for the whole share of 60,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A liability corresponding to the 25,000 paid, the legal guarantee given to the bank not creating a separate obligation to recognise.","es":""},"correct":false,"feedback":{"fr":"","en":"The legal guarantee is precisely a legal obligation that can justify a liability, in addition to payments made on behalf of the associate (IAS 28, para. 39). Rule to remember: A legal obligation counts as much as a payment (IAS 28, para. 39).","es":""}},{"id":"D","text":{"fr":"","en":"An amount recorded in other comprehensive income up to 60,000, the investment being unable to absorb the loss in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The excess share of losses does not go through other comprehensive income: any liability is limited to the obligation or to payments on behalf of the associate (IAS 28, para. 39). Rule to remember: No bypassing through other comprehensive income (IAS 28, para. 39).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000052","standard_id":"IAS28","concept_ids":["IAS28.LOSSES.LIABILITY"],"dimension":"ANALYSIS","context":"V1_QST.IAS28.000052","tested_point":"QST.IAS28.000052","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-liability"},"references":["IAS 28 §39"],"exercise":{"prompt":{"fr":"","en":"Alba SA has reduced its interest in Brise, an associate, to zero. Alba has neither a legal or constructive obligation towards Brise nor made any payment on its behalf. A colleague recognises a liability of 90,000 for Alba's share of the additional losses for the year. What is the error?","es":""},"explanation":{"fr":"","en":"Once the interest is reduced to zero, additional losses are provided for and a liability is recognised only to the extent that the investor has a legal or constructive obligation or has made payments on behalf of the associate (IAS 28, para. 39). The case shows neither an obligation nor a payment: the liability of 90,000 has no basis. Trap: Providing for the associate's losses beyond the interest with no obligation or payment. Rule to remember: No liability beyond the interest without an obligation or a payment (IAS 28, para. 39).","es":""},"common_error":{"fr":"","en":"Providing for the associate's losses beyond the interest with no obligation or payment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The liability should have been recognised, but for an amount limited to the nominal value of the interest Alba holds in Brise.","es":""},"correct":false,"feedback":{"fr":"","en":"The nominal value of the interest does not support a liability: beyond the interest, a liability requires a legal or constructive obligation or payments on behalf of the associate (IAS 28, para. 39). Rule to remember: The liability depends on an obligation or a payment, not on the interest (IAS 28, para. 39).","es":""}},{"id":"B","text":{"fr":"","en":"The liability should have been replaced by an impairment of the investment, already nil, which would bring its carrying amount below zero.","es":""},"correct":false,"feedback":{"fr":"","en":"An impairment does not replace the limitation rule: the investment being reduced to zero, a liability arises only if there is an obligation or a payment on behalf of the associate (IAS 28, para. 39). Rule to remember: No negative carrying amount without an obligation or a payment (IAS 28, para. 39).","es":""}},{"id":"C","text":{"fr":"","en":"The liability is correct, but the debit should have been recorded in equity rather than in profit or loss, the loss being the associate's and not Alba's.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice of the debit does not cure the error: without a legal or constructive obligation or a payment on behalf of the associate, no liability can be recognised (IAS 28, para. 39). Rule to remember: The condition concerns the existence of the liability itself (IAS 28, para. 39).","es":""}},{"id":"D","text":{"fr":"","en":"With no legal or constructive obligation and no payment on behalf of the associate, no liability is recognised for additional losses.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000053","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000053","tested_point":"QST.IAS28.000053","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-indicators"},"references":["IAS 28 §40","IAS 28 §41A","IAS 28 §41C"],"exercise":{"prompt":{"fr":"","en":"Under IAS 28, which statements about objective evidence of impairment of the net investment in an associate are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The net investment is impaired if there is objective evidence resulting from one or more events after initial recognition that have an impact on the estimated future cash flows (IAS 28, para. 40); significant financial difficulty of the investee or significant adverse changes in its environment are examples (IAS 28, paras. 41A and 41C). Trap: Treating a mere fall in profit as objective evidence without examining its effect on future cash flows. Rule to remember: Later event, effect on estimated future cash flows (IAS 28, para. 40).","es":""},"common_error":{"fr":"","en":"Treating a mere fall in profit as objective evidence without examining its effect on future cash flows.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The net investment is impaired if there is objective evidence resulting from one or more events that occurred after initial recognition.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Significant financial difficulty of the investee may constitute objective evidence of impairment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A fall in the associate's profit for one year, with no effect on the estimated future cash flows of the net investment, constitutes objective evidence.","es":""},"correct":false,"feedback":{"fr":"","en":"Objective evidence requires an impact on the estimated future cash flows of the net investment; a fall in profit without that effect is not evidence (IAS 28, para. 40). Rule to remember: An impact on estimated future cash flows is required (IAS 28, para. 40).","es":""}},{"id":"D","text":{"fr":"","en":"The events concerned must have an impact on the estimated future cash flows of the net investment.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"An event that occurred before the initial recognition of the investment is enough to recognise an impairment, just like a later event.","es":""},"correct":false,"feedback":{"fr":"","en":"The relevant events are those after initial recognition, not those before it: the objective evidence results from later events (IAS 28, para. 40). Rule to remember: Only events after initial recognition count (IAS 28, para. 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000054","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.INDICATORS"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000054","tested_point":"QST.IAS28.000054","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-indicators"},"references":["IAS 28 §40","IAS 28 §41A","IAS 28 §41C"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 35% of Brise SA, an associate accounted for under the equity method. Since the acquisition, a new law has banned Brise's main product, which has caused serious financial difficulties for it (facts of the case). What should be concluded for Alba's investment in Brise?","es":""},"explanation":{"fr":"","en":"The net investment is impaired if there is objective evidence resulting from one or more events after initial recognition that have an impact on the estimated future cash flows (IAS 28, para. 40); significant financial difficulty or significant adverse changes in the legal environment are examples (IAS 28, paras. 41A and 41C). Trap: Treating a mere fall in profit as objective evidence without examining its effect on future cash flows. Rule to remember: Later objective evidence: impairment test of the net investment (IAS 28, para. 40).","es":""},"common_error":{"fr":"","en":"Treating a mere fall in profit as objective evidence without examining its effect on future cash flows.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The facts are objective evidence of impairment arising after initial recognition: an impairment test of the net investment is required.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A test is not required as long as Brise keeps paying dividends, even if its prospects deteriorate significantly.","es":""},"correct":false,"feedback":{"fr":"","en":"Paying dividends does not neutralise objective evidence: the net investment is impaired if there is objective evidence resulting from events after initial recognition (IAS 28, para. 40). Rule to remember: Objective evidence triggers the test, whatever the dividends (IAS 28, para. 40).","es":""}},{"id":"C","text":{"fr":"","en":"The goodwill of the investment must be tested separately, the net investment remaining measured under the equity method with no further review.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is not tested separately: where there is evidence, the whole net investment is tested, and the starting rule refers to the objective evidence (IAS 28, para. 40). Rule to remember: The evidence concerns the net investment (IAS 28, para. 40).","es":""}},{"id":"D","text":{"fr":"","en":"The equity method must stop as soon as the difficulties appear, the investment being remeasured at fair value through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The associate's difficulties neither end the equity method nor require remeasurement at fair value: they trigger the impairment review of the net investment (IAS 28, para. 40). Rule to remember: Difficulties = impairment test, not a change of method (IAS 28, para. 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000056","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"CALCULATION","context":"V1_QST.IAS28.000056","tested_point":"QST.IAS28.000056","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-test"},"references":["IAS 28 §42"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds an interest in Brise SA, an associate, and there is objective evidence of impairment. The whole carrying amount of the investment, including goodwill, is {carrying_amount}. Its value in use is {value_in_use} and its fair value less costs of disposal is {fair_value_less_costs}. Calculate the recoverable amount of the investment and the impairment loss.","es":""},"explanation":{"fr":"","en":"Method: the recoverable amount is the higher of 1,500,000 and 1,650,000, i.e. 1,650,000; the impairment loss is 1,800,000 − 1,650,000 = 150,000. The investor tests the whole carrying amount of the net investment, including goodwill, as a single asset, by comparing it with its recoverable amount (IAS 28, para. 42). Trap: Using the lower of the two values, or testing goodwill separately. Rule to remember: Recoverable amount = the higher of the two; test of the whole carrying amount (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Using the lower of the two values, or testing goodwill separately.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"1800000","unit":"EUR"},{"id":"value_in_use","value":"1500000","unit":"EUR"},{"id":"fair_value_less_costs","value":"1650000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Whole carrying amount of the investment (including goodwill)","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"1650000","unit":"EUR"}],"steps":[{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":1650000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Whole carrying amount of the investment (including goodwill)","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":1650000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"Recoverable amount = the higher of the two; test of the whole carrying amount (IAS 28, para. 42).","es":""},"references":["REF.IAS28.42"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000058","standard_id":"IAS28","concept_ids":["IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"ANALYSIS","context":"V1_QST.IAS28.000058","tested_point":"QST.IAS28.000058","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-test"},"references":["IAS 28 §42"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds an interest in Brise SA, an associate, whose whole carrying amount is 1,800,000, including 200,000 of implicit goodwill. Following objective evidence of impairment, a colleague tests the goodwill separately and compares only the balance of 1,600,000 with the recoverable amount. What is the error?","es":""},"explanation":{"fr":"","en":"If there is objective evidence of impairment, the investor tests the whole carrying amount of the net investment, including goodwill, as a single asset, by comparing it with its recoverable amount; goodwill is neither tested separately nor allocated to a larger unit (IAS 28, para. 42). The colleague left 200,000 out of the test. Trap: Using the lower of the two values, or testing goodwill separately. Rule to remember: A single test of the whole carrying amount, including goodwill (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Using the lower of the two values, or testing goodwill separately.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The goodwill of 200,000 should have been allocated to the largest cash-generating unit of Alba's group, then tested with it rather than with the investment.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is not allocated to a larger unit: it is tested with the whole net investment, as a single asset (IAS 28, para. 42). Rule to remember: No allocation of goodwill to a larger unit (IAS 28, para. 42).","es":""}},{"id":"B","text":{"fr":"","en":"The carrying amount should have been compared with value in use, without considering fair value less costs of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The recoverable amount is the higher of value in use and fair value less costs of disposal; setting one aside does not cure the error of testing goodwill separately (IAS 28, para. 42). Rule to remember: Recoverable amount = the higher of the two values (IAS 28, para. 42).","es":""}},{"id":"C","text":{"fr":"","en":"The whole carrying amount of the net investment, including goodwill, must be tested as a single asset; goodwill is not tested separately.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The test should have been skipped, an equity-accounted investment remaining at its entry value until the associate is wound up.","es":""},"correct":false,"feedback":{"fr":"","en":"The test is required where there is objective evidence of impairment; the investment does not stay at its entry value until the associate is wound up (IAS 28, para. 42). Rule to remember: Objective evidence: test of the net investment (IAS 28, para. 42).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000060","standard_id":"IAS28","concept_ids":["IAS28.DISC.LOSS_OF_INFLUENCE"],"dimension":"CALCULATION","context":"V1_QST.IAS28.000060","tested_point":"QST.IAS28.000060","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-loss"},"references":["IAS 28 §22"],"exercise":{"prompt":{"fr":"","en":"Alba SA sells part of its interest in Brise SA and thereby loses significant influence; the retained interest is a financial asset. Alba receives consideration of {consideration_received}. The fair value of the retained interest is {retained_interest_fair_value}, the amount of other comprehensive income to reclassify to profit or loss is {oci_reclassified} (gain), and the carrying amount of the investment at the date of loss of influence is {investment_carrying_amount} (case data). Calculate the gain recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"Method: 600,000 + 350,000 + 40,000 − 870,000 = 120,000. On loss of significant influence, the investor discontinues the equity method; the retained interest that is a financial asset is measured at fair value; the gain or loss relating to the loss of influence is recognised in profit or loss, and the amounts of other comprehensive income are treated as if the associate had directly disposed of the related assets and liabilities (IAS 28, para. 22). Trap: Leaving out the fair value of the retained interest or the reclassification of other comprehensive income. Rule to remember: Gain = consideration + fair value of retained interest + reclassified other comprehensive income − carrying amount (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Leaving out the fair value of the retained interest or the reclassification of other comprehensive income.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration_received","value":"600000","unit":"EUR"},{"id":"retained_interest_fair_value","value":"350000","unit":"EUR"},{"id":"oci_reclassified","value":"40000","unit":"EUR"},{"id":"investment_carrying_amount","value":"870000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Consideration received","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the retained interest","es":""},"value":"350000","unit":"EUR"},{"label":{"fr":"","en":"Other comprehensive income reclassified","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the investment","es":""},"value":"870000","unit":"EUR"}],"steps":[{"id":"GAIN_ON_LOSS_OF_INFLUENCE","label":{"fr":"","en":"Gain on loss of significant influence","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN_ON_LOSS_OF_INFLUENCE","meaning":{"fr":"","en":"Gain on loss of significant influence","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration received","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the retained interest","es":""},"value":350000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Other comprehensive income reclassified","es":""},"value":40000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Carrying amount of the investment","es":""},"value":870000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"rationale":{"fr":"","en":"Gain = consideration + fair value of retained interest + reclassified other comprehensive income − carrying amount (IAS 28, para. 22).","es":""},"references":["REF.IAS28.22"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000062","standard_id":"IAS28","concept_ids":["IAS28.DISC.LOSS_OF_INFLUENCE"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000062","tested_point":"QST.IAS28.000062","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-loss"},"references":["IAS 28 §22"],"exercise":{"prompt":{"fr":"","en":"Alba SA sells part of its interest in Brise SA, an associate. Case convention: the analysis of the facts concludes that Alba loses significant influence at the date of the sale, and the retained interest is a financial asset. What treatment does Alba apply from that date?","es":""},"explanation":{"fr":"","en":"The investor discontinues the equity method from the date of the loss of significant influence; if the retained interest is a financial asset, it is measured at fair value under IFRS 9, and the gain or loss relating to the loss of influence is recognised in profit or loss (IAS 28, para. 22). Trap: Keeping the interest at its previous carrying amount with no gain recognised. Rule to remember: Loss of influence: end of the equity method, fair value, profit or loss (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Keeping the interest at its previous carrying amount with no gain recognised.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It continues to equity-account the retained interest until the next reporting date, then reclassifies that interest as a financial asset at that time.","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method does not continue until the reporting date: it ends from the date of the loss of significant influence (IAS 28, para. 22). Rule to remember: The equity method ends at the date of loss of influence (IAS 28, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"It keeps the interest at its previous carrying amount, with no remeasurement, and recognises no gain or loss at the date of loss of influence, any difference being carried forward.","es":""},"correct":false,"feedback":{"fr":"","en":"The retained interest is not kept at its previous carrying amount: fair value is used and the related gain or loss is recognised in profit or loss (IAS 28, para. 22). Rule to remember: Retained interest at fair value, gain or loss in profit or loss (IAS 28, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"It discontinues the equity method, measures the retained interest at fair value and recognises in profit or loss the gain or loss relating to the loss of influence.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It discontinues the equity method and takes the gain or loss relating to the loss of influence directly to equity, outside profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The gain or loss relating to the loss of influence is recognised in profit or loss, not directly in equity (IAS 28, para. 22). Rule to remember: The result of the loss of influence goes through profit or loss (IAS 28, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000063","standard_id":"IAS28","concept_ids":["IAS28.DISC.ASSOC_TO_JV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000063","tested_point":"QST.IAS28.000063","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-jv"},"references":["IAS 28 §24"],"exercise":{"prompt":{"fr":"","en":"When an associate becomes a joint venture, the investor discontinues the equity method and remeasures the retained interest at fair value.","es":""},"explanation":{"fr":"","en":"When an associate becomes a joint venture (or the reverse), the investor continues to apply the equity method and does not remeasure the retained interest (IAS 28, para. 24). The change in the nature of the investee therefore does not end the method. Trap: Treating the change from associate to joint venture as a loss of significant influence. Rule to remember: Associate becoming a joint venture: equity method continues, no remeasurement (IAS 28, para. 24).","es":""},"common_error":{"fr":"","en":"Treating the change from associate to joint venture as a loss of significant influence.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000064","standard_id":"IAS28","concept_ids":["IAS28.DISC.ASSOC_TO_JV"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000064","tested_point":"QST.IAS28.000064","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-jv"},"references":["IAS 28 §24"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds 30% of Brise SA, an associate accounted for under the equity method. Under a new contractual agreement, Alba and another shareholder now exercise joint control over Brise, which becomes a joint venture (facts of the case). How does Alba treat its interest at the date of the change?","es":""},"explanation":{"fr":"","en":"When an associate becomes a joint venture (or the reverse), the investor continues to apply the equity method and does not remeasure the retained interest (IAS 28, para. 24). Trap: Treating the change from associate to joint venture as a loss of significant influence. Rule to remember: Associate becoming a joint venture: equity method continues, no remeasurement (IAS 28, para. 24).","es":""},"common_error":{"fr":"","en":"Treating the change from associate to joint venture as a loss of significant influence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It continues to apply the equity method and does not remeasure the retained interest.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It discontinues the equity method and remeasures its interest at fair value, with a gain or loss in profit or loss at the date of the change.","es":""},"correct":false,"feedback":{"fr":"","en":"Becoming a joint venture does not end the equity method and does not call for remeasurement of the retained interest: a remeasurement gain or loss has no basis (IAS 28, para. 24). Rule to remember: No remeasurement when an associate becomes a joint venture (IAS 28, para. 24).","es":""}},{"id":"C","text":{"fr":"","en":"It discontinues the equity method and accounts for its interest as a financial asset measured under IFRS 9 from that date.","es":""},"correct":false,"feedback":{"fr":"","en":"The investor stays under the equity method: a financial asset measured under IFRS 9 does not correspond to the change from associate to joint venture (IAS 28, para. 24). Rule to remember: The method is maintained (IAS 28, para. 24).","es":""}},{"id":"D","text":{"fr":"","en":"It continues the equity method but remeasures the retained interest at fair value so as to include the goodwill of the joint venture.","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method continues, but without remeasuring the retained interest at fair value, whatever the goodwill concerned (IAS 28, para. 24). Rule to remember: The retained interest is not remeasured (IAS 28, para. 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000065","standard_id":"IAS28","concept_ids":["IAS28.DISC.PARTIAL_DISPOSAL_OCI"],"dimension":"CALCULATION","context":"V1_QST.IAS28.000065","tested_point":"QST.IAS28.000065","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-partial"},"references":["IAS 28 §25"],"exercise":{"prompt":{"fr":"","en":"Alba SA sells part of its interest in Brise SA, an associate, and retains significant influence. The sale represents {reduction_proportion} of its previous interest (case data). The accumulated other comprehensive income recognised in respect of Brise amounts to {accumulated_oci} (gain). Calculate the amount reclassified to profit or loss.","es":""},"explanation":{"fr":"","en":"Method: 120,000 × 25% = 30,000. On a partial disposal where significant influence is retained, the investor reclassifies to profit or loss the proportion of the other comprehensive income previously recognised that corresponds to the reduction in its interest (IAS 28, para. 25). Trap: Reclassifying all the accumulated other comprehensive income. Rule to remember: Partial disposal: reclassification of the proportion corresponding to the reduction (IAS 28, para. 25).","es":""},"common_error":{"fr":"","en":"Reclassifying all the accumulated other comprehensive income.","es":""},"format":"CALCULATION","placeholders":[{"id":"accumulated_oci","value":"120000","unit":"EUR"},{"id":"reduction_proportion","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Accumulated other comprehensive income","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Proportion of the reduction in the interest","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"OCI_RECLASSIFIED","label":{"fr":"","en":"Amount reclassified to profit or loss","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"OCI_RECLASSIFIED","meaning":{"fr":"","en":"Amount reclassified to profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accumulated other comprehensive income","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Proportion of the reduction in the interest","es":""},"value":25,"unit":"PERCENT"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"Partial disposal: reclassification of the proportion corresponding to the reduction (IAS 28, para. 25).","es":""},"references":["REF.IAS28.25"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000067","standard_id":"IAS28","concept_ids":["IAS28.DISC.BECOMES_SUBSIDIARY","IAS28.DISC.LOSS_OF_INFLUENCE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000067","tested_point":"QST.IAS28.000067","difficulty":"EXPERT","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000009","section_id":"rule-loss"},"references":["IAS 28 §22","IAS 28"],"exercise":{"prompt":{"fr":"","en":"When the investee becomes a subsidiary of the investor, the investor continues to apply the equity method to its interest.","es":""},"explanation":{"fr":"","en":"If the investee becomes a subsidiary, the investor discontinues the equity method and applies IFRS 3 and IFRS 10 (IAS 28, para. 22); in this business combination achieved in stages, the previous interest is remeasured at its acquisition-date fair value (IFRS 3, para. 42). This case must not be confused with loss of significant influence, which also ends the method but where the retained interest is a financial asset measured at fair value (IAS 28, para. 22). Trap: Continuing to equity-account an entity that has become a subsidiary. Rule to remember: Entity that becomes a subsidiary: end of the equity method, consolidation (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Continuing to equity-account an entity that has become a subsidiary.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000068","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS11","IAS28.INFLUENCE.PRESUMPTION_20"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000068","tested_point":"QST.IAS28.000068","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000002","section_id":"rule-presumption"},"references":["IAS 28 §5","IAS 28"],"exercise":{"prompt":{"fr":"","en":"Alba SA participates in a joint venture without exercising joint control. It holds 25% of the entity's voting rights and nothing in the case rebuts the presumption of significant influence (facts of the case). How does Alba account for its interest?","es":""},"explanation":{"fr":"","en":"A party that participates in a joint venture without joint control accounts for its interest under IFRS 9, unless it has significant influence, in which case it applies IAS 28 (IFRS 11, para. 25). With 25% of the voting rights, significant influence is presumed unless clearly demonstrated otherwise (IAS 28, para. 5): Alba therefore applies the equity method. Trap: Applying IFRS 9 to an interest that confers significant influence. Rule to remember: Without joint control: IFRS 9, or IAS 28 if significant influence (IFRS 11, para. 25; IAS 28, para. 5).","es":""},"common_error":{"fr":"","en":"Applying IFRS 9 to an interest that confers significant influence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under IFRS 9, at fair value: the absence of joint control rules out IAS 28 whatever the influence exercised over the entity, even if presumed.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 is the starting point for a party without joint control, but significant influence opens the application of IAS 28 (IFRS 11, para. 25); it is presumed from 20% of the voting rights, unless clearly demonstrated otherwise (IAS 28, para. 5). Rule to remember: Presumed significant influence leads to IAS 28 (IAS 28, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"Under IFRS 11, as an investment in a joint venture: any party to the joint venture applies the equity method in the same way.","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method under IFRS 11 concerns the party with joint control (IFRS 11, para. 24); Alba does not have that control, its case falls under presumed significant influence (IAS 28, para. 5). Rule to remember: Joint control or significant influence, two distinct routes (IAS 28, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"By consolidation: a 25% interest in a joint venture leads to consolidating the entity under IFRS 10, even without joint control.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of joint control does not imply control: the investor without joint control applies IFRS 9 or, with significant influence, IAS 28 (IFRS 11, para. 25; IAS 28, para. 5). Rule to remember: No consolidation without control (IAS 28, para. 5).","es":""}},{"id":"D","text":{"fr":"","en":"Under IAS 28, using the equity method: a party without joint control applies IFRS 9, unless it has significant influence, in which case it applies IAS 28.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000070","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS10","IAS28.EM.GOODWILL_AND_BARGAIN"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000070","tested_point":"QST.IAS28.000070","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000003","section_id":"rule-goodwill"},"references":["IAS 28 §32","IAS 28"],"exercise":{"prompt":{"fr":"","en":"Alba SA loses control of Delta SA but retains 30%, which gives it significant influence. The fair value of the retained interest is 1,500,000; Alba's share of the net fair value of Delta's identifiable assets and liabilities is 1,300,000 (case data). What is the cost of the equity-accounted interest and how is the difference from the share treated?","es":""},"explanation":{"fr":"","en":"On loss of control, the fair value of the retained investment is, where applicable, the cost on initial recognition of an investment in an associate (IFRS 10, para. 25). The difference between that cost and the investor's share of the net fair value of the identifiable assets and liabilities is goodwill if positive (included in the carrying amount of the investment) or income if negative (IAS 28, para. 32): 1,500,000 − 1,300,000 = 200,000 of goodwill. Trap: Using the previous carrying amount of the interest as the cost of the associate. Rule to remember: The cost of the associate is the fair value of the retained interest (IFRS 10, para. 25; IAS 28, para. 32).","es":""},"common_error":{"fr":"","en":"Using the previous carrying amount of the interest as the cost of the associate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cost is the carrying amount of Delta before the loss of control; the difference from the share of 1,300,000 is taken to profit or loss for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost is not the previous carrying amount: it is the fair value of the retained interest (IFRS 10, para. 25), and a positive difference from the share is goodwill, not a gain (IAS 28, para. 32). Rule to remember: Cost = fair value; positive difference = goodwill (IAS 28, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"The cost is the fair value of 1,500,000; the difference of 200,000 from the share is goodwill, included in the carrying amount of the investment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The cost is the share of 1,300,000; the fair value of 1,500,000 is not used, because the investment is not acquired from a third party.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost used is the fair value of the retained interest, not the share of net fair values; the share serves to measure the difference from that cost (IFRS 10, para. 25; IAS 28, para. 32). Rule to remember: The share serves as the basis of comparison (IAS 28, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"The cost is the fair value of 1,500,000; the difference of 200,000 from the share is income recognised in the share of profit for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"A positive difference between cost and share is goodwill included in the carrying amount; only a negative difference is income (IAS 28, para. 32). Rule to remember: Positive: goodwill; negative: income (IAS 28, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000071","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS9"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000071","tested_point":"QST.IAS28.000071","difficulty":"EXPERT","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000010","section_id":"rule-ifrs9"},"references":["IAS 28 §22"],"exercise":{"prompt":{"fr":"","en":"After a loss of significant influence, the retained interest that is a financial asset remains measured under the equity method at its previous carrying amount.","es":""},"explanation":{"fr":"","en":"The investor discontinues the equity method from the date of the loss of significant influence; if the retained interest is a financial asset, it is measured at fair value under IFRS 9 (IAS 28, para. 22). Trap: Keeping the equity method for an interest that is no more than a financial asset. Rule to remember: Without significant influence, the retained interest falls under IFRS 9 (IAS 28, para. 22).","es":""},"common_error":{"fr":"","en":"Keeping the equity method for an interest that is no more than a financial asset.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000072","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IAS36","IAS28.IMPAIRMENT.SINGLE_ASSET_TEST"],"dimension":"APPLICATION","context":"V1_QST.IAS28.000072","tested_point":"QST.IAS28.000072","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000008","section_id":"rule-test"},"references":["IAS 28 §42","IAS 28"],"exercise":{"prompt":{"fr":"","en":"Alba SA must test the net investment in Brise, an associate, whose whole carrying amount, including goodwill, is 2,000,000. There is objective evidence of impairment. How does it apply IAS 36?","es":""},"explanation":{"fr":"","en":"If objective evidence of impairment exists, the investor tests the whole carrying amount of the net investment, including goodwill, as a single asset under IAS 36, by comparing it with its recoverable amount, the higher of value in use and fair value less costs of disposal; goodwill is neither tested separately nor allocated to a larger unit (IAS 28, para. 42). Trap: Using the lower of the two values, or testing goodwill separately. Rule to remember: IAS 36 applies to the whole net investment, as a single asset (IAS 28, para. 42).","es":""},"common_error":{"fr":"","en":"Using the lower of the two values, or testing goodwill separately.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It tests the goodwill of the investment separately, then allocates it to the largest cash-generating unit available to Alba, before comparing the values.","es":""},"correct":false,"feedback":{"fr":"","en":"The goodwill of the investment is neither tested separately nor allocated to a larger cash-generating unit: it is tested with the net investment, as a single asset (IAS 28, para. 42). Rule to remember: One test, with no allocation of goodwill (IAS 28, para. 42).","es":""}},{"id":"B","text":{"fr":"","en":"It compares the whole carrying amount with the lower of value in use and fair value less costs of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The recoverable amount is the higher of the two values, not the lower; using the lower would understate the recoverable amount (IAS 28, para. 42). Rule to remember: Recoverable amount = the higher (IAS 28, para. 42).","es":""}},{"id":"C","text":{"fr":"","en":"It compares the carrying amount excluding goodwill with the recoverable amount, the associate's goodwill being left out of the IAS 36 test.","es":""},"correct":false,"feedback":{"fr":"","en":"The test covers the whole carrying amount, including goodwill: leaving goodwill out of the test contradicts treating the investment as a single asset (IAS 28, para. 42). Rule to remember: Goodwill is included in the test (IAS 28, para. 42).","es":""}},{"id":"D","text":{"fr":"","en":"It tests the whole carrying amount as a single asset, against the higher of value in use and fair value less costs of disposal.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000073","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.IFRS12","IAS28.SCOPE.DEFINITIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000073","tested_point":"QST.IAS28.000073","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000001","section_id":"rule-definitions"},"references":["IAS 28 §3","IAS 28"],"exercise":{"prompt":{"fr":"","en":"In which standard are the disclosures about the nature, risks and summarised financial information of interests in associates and joint ventures found?","es":""},"explanation":{"fr":"","en":"The disclosures about interests in associates and joint ventures (nature, risks, summarised financial information) are in IFRS 12. IAS 28 defines the associate as the entity over which the investor has significant influence (IAS 28, para. 3). Trap: Looking in IAS 28 for disclosures that belong to IFRS 12. Rule to remember: Definition in IAS 28, disclosures in IFRS 12 (IAS 28, para. 3).","es":""},"common_error":{"fr":"","en":"Looking in IAS 28 for disclosures that belong to IFRS 12.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In IAS 28, which brings together the definition of the associate, the equity method and all the related disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 28 defines the associate (IAS 28, para. 3) but the disclosures on nature, risks and summarised financial information are in IFRS 12. Rule to remember: The disclosures belong to IFRS 12 (IAS 28, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"In IFRS 12, whereas IAS 28 defines the associate and governs the equity method.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In IFRS 10, which deals with the disclosures about all of the investor's interests in other entities, associates included.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 10 deals with consolidated financial statements; the disclosures about associates and joint ventures are in IFRS 12, the associate being defined in IAS 28 (IAS 28, para. 3). Rule to remember: Each standard has its role: IFRS 10 consolidates, IFRS 12 discloses (IAS 28, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"In IFRS 9, which provides the disclosures about interests in equity-accounted entities as part of financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 deals with financial instruments; the disclosures about associates are in IFRS 12, the associate being defined in IAS 28 (IAS 28, para. 3). Rule to remember: The disclosures about associates are in IFRS 12 (IAS 28, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS28.000074","standard_id":"IAS28","concept_ids":["IAS28.INTERACTIONS.ED2024","IAS28.LOSSES.BEYOND_INTEREST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS28.000074","tested_point":"QST.IAS28.000074","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS28","lesson_id":"LS.IAS28.000007","section_id":"rule-cap"},"references":["IAS 28 §38","IAS 28"],"exercise":{"prompt":{"fr":"","en":"What should be remembered about the 2024 exposure draft on the equity method, which proposes among other things not to recognise previously unrecognised losses when an additional interest is bought?","es":""},"explanation":{"fr":"","en":"The 2024 exposure draft on the equity method proposes, among other things, when an additional interest is bought, not to recognise previously unrecognised losses and to present separately the share of profit or loss and the share of other comprehensive income; it does not amend the Standard. The rule in force remains to stop recognising the share of losses when it equals or exceeds the investor's interest (IAS 28, para. 38). Trap: Presenting a proposal as a rule in force. Rule to remember: A proposal is not a rule in force (IAS 28, para. 38).","es":""},"common_error":{"fr":"","en":"Presenting a proposal as a rule in force.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is a rule in force since its publication, replacing the stop on recognising losses when the share reaches the investor's interest.","es":""},"correct":false,"feedback":{"fr":"","en":"An exposure draft does not apply from its publication: the rule in force remains the stop on recognising losses at the level of the interest (IAS 28, para. 38). Rule to remember: A proposal does not replace the rule in force (IAS 28, para. 38).","es":""}},{"id":"B","text":{"fr":"","en":"It is a mandatory interpretation that clarifies the rule in force without changing it, applicable to the current year's accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"An exposure draft proposes changes, it does not clarify a rule already in force; it does not amend the Standard (IAS 28, para. 38). Rule to remember: A proposal does not amend the Standard (IAS 28, para. 38).","es":""}},{"id":"C","text":{"fr":"","en":"It is a proposal, which does not amend the Standard; the rule in force remains to stop recognising losses when the share reaches the interest.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is a rule that already applies to associates, but does not concern joint ventures, for which the previous rule remains.","es":""},"correct":false,"feedback":{"fr":"","en":"The exposure draft is not an applicable rule, either for associates or for joint ventures: the rule in force is that of para. 38 (IAS 28, para. 38). Rule to remember: No part of a proposal is already applicable (IAS 28, para. 38).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS28.000001":"Where IAS 28 applies: associates, joint ventures and the equity method — The rule: three relationships and one method","LX.IAS28.000002":"Where IAS 28 applies: associates, joint ventures and the equity method — The rule: three relationships and one method","LX.IAS28.000003":"Where IAS 28 applies: associates, joint ventures and the equity method — Example: three investors, three treatments","LX.IAS28.000004":"Where IAS 28 applies: associates, joint ventures and the equity method — The rule: three relationships and one method","LX.IAS28.000005":"Where IAS 28 applies: associates, joint ventures and the equity method — Exemptions from the equity method","LX.IAS28.000006":"Where IAS 28 applies: associates, joint ventures and the equity method — Points of attention","LX.IAS28.000007":"Where IAS 28 applies: associates, joint ventures and the equity method — An investment held for sale","LX.IAS28.000008":"Where IAS 28 applies: associates, joint ventures and the equity method — An investment held for sale","LX.IAS28.000009":"Significant influence: a rebuttable 20% presumption and indicators — The rule: the 20% presumption, rebuttable both ways","LX.IAS28.000010":"Significant influence: a rebuttable 20% presumption and indicators — The rule: the 20% presumption, rebuttable both ways","LX.IAS28.000011":"Significant influence: a rebuttable 20% presumption and indicators — Example: five investors, conclusions to justify","LX.IAS28.000012":"Significant influence: a rebuttable 20% presumption and indicators — Indicators: what evidences influence beyond the percentage","LX.IAS28.000013":"Significant influence: a rebuttable 20% presumption and indicators — The rule: the 20% presumption, rebuttable both ways","LX.IAS28.000014":"Significant influence: a rebuttable 20% presumption and indicators — Points of attention","LX.IAS28.000015":"Significant influence: a rebuttable 20% presumption and indicators — Potential voting rights","LX.IAS28.000016":"Significant influence: a rebuttable 20% presumption and indicators — Professional judgement: documenting the influence assessment","LX.IAS28.000017":"Significant influence: a rebuttable 20% presumption and indicators — Professional judgement: documenting the influence assessment","LX.IAS28.000018":"Significant influence: a rebuttable 20% presumption and indicators — The rule: a power to participate, not a power to decide alone","LX.IAS28.000019":"Initial cost, goodwill and the bargain purchase — Worked example: the goodwill on Cervane's investment","LX.IAS28.000020":"Initial cost, goodwill and the bargain purchase — Worked example: when cost is below the share","LX.IAS28.000021":"Initial cost, goodwill and the bargain purchase — The rule: goodwill or income, depending on the sign of the difference","LX.IAS28.000022":"Initial cost, goodwill and the bargain purchase — The rule: goodwill or income, depending on the sign of the difference","LX.IAS28.000023":"Initial cost, goodwill and the bargain purchase — The entries: the acquisition and the possible income","LX.IAS28.000024":"Initial cost, goodwill and the bargain purchase — The entries: the acquisition and the possible income","LX.IAS28.000025":"Initial cost, goodwill and the bargain purchase — Points of attention","LX.IAS28.000026":"Initial cost, goodwill and the bargain purchase — The rule: goodwill or income, depending on the sign of the difference","LX.IAS28.000027":"Initial cost, goodwill and the bargain purchase — Worked example: the goodwill on Cervane's investment","LX.IAS28.000028":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — Worked example: the roll-forward of Lormand's investment","LX.IAS28.000029":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — Worked example: the roll-forward of Lormand's investment","LX.IAS28.000030":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — Lormand's entries for the year","LX.IAS28.000031":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — The rule: dividends received reduce the investment","LX.IAS28.000032":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — The rule: dividends received reduce the investment","LX.IAS28.000033":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — The rule: the share of profit and of other comprehensive income","LX.IAS28.000034":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — The rule: the share of profit and of other comprehensive income","LX.IAS28.000035":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — Worked example: the roll-forward of Lormand's investment","LX.IAS28.000036":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — Worked example: the roll-forward of Lormand's investment","LX.IAS28.000037":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — Points of attention","LX.IAS28.000038":"Adjusting the share: fair value, uniform policies and reporting dates — Worked example: Sorbel's share after additional depreciation","LX.IAS28.000039":"Adjusting the share: fair value, uniform policies and reporting dates — The rule: an adjustment that follows the fair value excess","LX.IAS28.000040":"Adjusting the share: fair value, uniform policies and reporting dates — The rule: an adjustment that follows the fair value excess","LX.IAS28.000041":"Adjusting the share: fair value, uniform policies and reporting dates — Worked example: Sorbel's share after additional depreciation","LX.IAS28.000042":"Adjusting the share: fair value, uniform policies and reporting dates — Uniform accounting policies","LX.IAS28.000043":"Adjusting the share: fair value, uniform policies and reporting dates — Uniform accounting policies","LX.IAS28.000044":"Adjusting the share: fair value, uniform policies and reporting dates — Different reporting dates","LX.IAS28.000045":"Adjusting the share: fair value, uniform policies and reporting dates — Points of attention","LX.IAS28.000046":"Transactions with the associate: eliminating the unrealised profit share — Worked example: a downstream and an upstream transaction","LX.IAS28.000047":"Transactions with the associate: eliminating the unrealised profit share — Worked example: a downstream and an upstream transaction","LX.IAS28.000048":"Transactions with the associate: eliminating the unrealised profit share — The rule: upstream, downstream, and the share eliminated","LX.IAS28.000049":"Transactions with the associate: eliminating the unrealised profit share — The rule: upstream, downstream, and the share eliminated","LX.IAS28.000050":"Transactions with the associate: eliminating the unrealised profit share — The elimination entry","LX.IAS28.000051":"Transactions with the associate: eliminating the unrealised profit share — When the loss shows an impairment: no partial elimination","LX.IAS28.000052":"Transactions with the associate: eliminating the unrealised profit share — When the loss shows an impairment: no partial elimination","LX.IAS28.000053":"Transactions with the associate: eliminating the unrealised profit share — Contribution of non-monetary assets to an associate","LX.IAS28.000054":"Transactions with the associate: eliminating the unrealised profit share — The 2014 amendments: a full gain for a business, deferred","LX.IAS28.000055":"Transactions with the associate: eliminating the unrealised profit share — The 2014 amendments: a full gain for a business, deferred","LX.IAS28.000056":"When losses exceed the investment: the cap and the liability — Worked example: Orlan's two years","LX.IAS28.000057":"When losses exceed the investment: the cap and the liability — The rule: a cap based on the interest, and an order of allocation","LX.IAS28.000058":"When losses exceed the investment: the cap and the liability — Orlan's year 2 entry","LX.IAS28.000059":"When losses exceed the investment: the cap and the liability — The rule: a cap based on the interest, and an order of allocation","LX.IAS28.000060":"When losses exceed the investment: the cap and the liability — Long-term interests: which count in the interest?","LX.IAS28.000061":"When losses exceed the investment: the cap and the liability — The rule: a liability only if there is an obligation","LX.IAS28.000062":"When losses exceed the investment: the cap and the liability — The rule: a liability only if there is an obligation","LX.IAS28.000063":"When losses exceed the investment: the cap and the liability — Points of attention","LX.IAS28.000064":"When losses exceed the investment: the cap and the liability — Worked example: Orlan's two years","LX.IAS28.000065":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: later events that affect future cash flows","LX.IAS28.000066":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: test the whole investment as a single asset","LX.IAS28.000067":"Impairment of the investment: objective evidence and a test of the whole investment — Worked example: Hessen's test of its investment in Torvald","LX.IAS28.000068":"Impairment of the investment: objective evidence and a test of the whole investment — The impairment loss entry","LX.IAS28.000069":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: test the whole investment as a single asset","LX.IAS28.000070":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: test the whole investment as a single asset","LX.IAS28.000071":"Impairment of the investment: objective evidence and a test of the whole investment — Points of attention","LX.IAS28.000072":"Impairment of the investment: objective evidence and a test of the whole investment — The 2026 proposal on indicators: a proposal, not a rule","LX.IAS28.000073":"Impairment of the investment: objective evidence and a test of the whole investment — The 2026 proposal on indicators: a proposal, not a rule","LX.IAS28.000074":"Ending the equity method: loss of influence, partial disposal, change of status — Worked example: Pelvor's loss of influence over Garnex","LX.IAS28.000075":"Ending the equity method: loss of influence, partial disposal, change of status — The loss of influence entry","LX.IAS28.000076":"Ending the equity method: loss of influence, partial disposal, change of status — The rule: stop, fair value of the retained interest, gain or loss in profit or loss","LX.IAS28.000077":"Ending the equity method: loss of influence, partial disposal, change of status — The rule: stop, fair value of the retained interest, gain or loss in profit or loss","LX.IAS28.000078":"Ending the equity method: loss of influence, partial disposal, change of status — From associate to joint venture, and the other way round","LX.IAS28.000079":"Ending the equity method: loss of influence, partial disposal, change of status — Partial disposal with influence retained","LX.IAS28.000080":"Ending the equity method: loss of influence, partial disposal, change of status — Partial disposal with influence retained","LX.IAS28.000081":"Ending the equity method: loss of influence, partial disposal, change of status — The associate becomes a subsidiary","LX.IAS28.000082":"Ending the equity method: loss of influence, partial disposal, change of status — Points of attention","LX.IAS28.000083":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — IFRS 11: joint venture with or without joint control","LX.IAS28.000084":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — IFRS 11: joint venture with or without joint control","LX.IAS28.000085":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — IAS 36: a test applied to the whole investment","LX.IAS28.000086":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — IAS 36: a test applied to the whole investment","LX.IAS28.000087":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — IFRS 10: loss of control with a retained interest in an associate","LX.IAS28.000088":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — IFRS 9: long-term interests and the retained interest","LX.IAS28.000089":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — IFRS 12: the disclosures","LX.IAS28.000090":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — The 2024 exposure draft: a proposal","QST.IAS28.000001":"Where IAS 28 applies: associates, joint ventures and the equity method — The rule: three relationships and one method","QST.IAS28.000002":"Where IAS 28 applies: associates, joint ventures and the equity method — The rule: three relationships and one method","QST.IAS28.000003":"Where IAS 28 applies: associates, joint ventures and the equity method — Exemptions from the equity method","QST.IAS28.000005":"Where IAS 28 applies: associates, joint ventures and the equity method — An investment held for sale","QST.IAS28.000006":"Significant influence: a rebuttable 20% presumption and indicators — The rule: a power to participate, not a power to decide alone","QST.IAS28.000007":"Significant influence: a rebuttable 20% presumption and indicators — The rule: a power to participate, not a power to decide alone","QST.IAS28.000008":"Significant influence: a rebuttable 20% presumption and indicators — The rule: a power to participate, not a power to decide alone","QST.IAS28.000009":"Significant influence: a rebuttable 20% presumption and indicators — The rule: the 20% presumption, rebuttable both ways","QST.IAS28.000010":"Significant influence: a rebuttable 20% presumption and indicators — The rule: the 20% presumption, rebuttable both ways","QST.IAS28.000012":"Significant influence: a rebuttable 20% presumption and indicators — Indicators: what evidences influence beyond the percentage","QST.IAS28.000013":"Significant influence: a rebuttable 20% presumption and indicators — Indicators: what evidences influence beyond the percentage","QST.IAS28.000015":"Significant influence: a rebuttable 20% presumption and indicators — Potential voting rights","QST.IAS28.000016":"Significant influence: a rebuttable 20% presumption and indicators — Potential voting rights","QST.IAS28.000018":"Initial cost, goodwill and the bargain purchase — The rule: the starting point is cost","QST.IAS28.000019":"Initial cost, goodwill and the bargain purchase — The rule: the starting point is cost","QST.IAS28.000020":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — The rule: the share of profit and of other comprehensive income","QST.IAS28.000023":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — The rule: dividends received reduce the investment","QST.IAS28.000025":"The carrying amount that moves: share of profit, of other comprehensive income and dividends — The rule: dividends received reduce the investment","QST.IAS28.000026":"Initial cost, goodwill and the bargain purchase — The rule: goodwill or income, depending on the sign of the difference","QST.IAS28.000028":"Initial cost, goodwill and the bargain purchase — The rule: goodwill or income, depending on the sign of the difference","QST.IAS28.000029":"Adjusting the share: fair value, uniform policies and reporting dates — The rule: an adjustment that follows the fair value excess","QST.IAS28.000030":"Adjusting the share: fair value, uniform policies and reporting dates — The rule: an adjustment that follows the fair value excess","QST.IAS28.000031":"Adjusting the share: fair value, uniform policies and reporting dates — The rule: an adjustment that follows the fair value excess","QST.IAS28.000032":"Adjusting the share: fair value, uniform policies and reporting dates — Uniform accounting policies","QST.IAS28.000034":"Adjusting the share: fair value, uniform policies and reporting dates — Different reporting dates","QST.IAS28.000036":"Transactions with the associate: eliminating the unrealised profit share — The rule: upstream, downstream, and the share eliminated","QST.IAS28.000039":"Transactions with the associate: eliminating the unrealised profit share — When the loss shows an impairment: no partial elimination","QST.IAS28.000040":"Transactions with the associate: eliminating the unrealised profit share — When the loss shows an impairment: no partial elimination","QST.IAS28.000042":"Transactions with the associate: eliminating the unrealised profit share — Contribution of non-monetary assets to an associate","QST.IAS28.000043":"Transactions with the associate: eliminating the unrealised profit share — Contribution of non-monetary assets to an associate","QST.IAS28.000044":"Transactions with the associate: eliminating the unrealised profit share — The rule: upstream, downstream, and the share eliminated","QST.IAS28.000045":"When losses exceed the investment: the cap and the liability — The rule: a cap based on the interest, and an order of allocation","QST.IAS28.000047":"When losses exceed the investment: the cap and the liability — The rule: a cap based on the interest, and an order of allocation","QST.IAS28.000048":"When losses exceed the investment: the cap and the liability — The rule: a cap based on the interest, and an order of allocation","QST.IAS28.000050":"When losses exceed the investment: the cap and the liability — The rule: a liability only if there is an obligation","QST.IAS28.000051":"When losses exceed the investment: the cap and the liability — The rule: a liability only if there is an obligation","QST.IAS28.000052":"When losses exceed the investment: the cap and the liability — The rule: a liability only if there is an obligation","QST.IAS28.000053":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: later events that affect future cash flows","QST.IAS28.000054":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: later events that affect future cash flows","QST.IAS28.000056":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: test the whole investment as a single asset","QST.IAS28.000058":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: test the whole investment as a single asset","QST.IAS28.000060":"Ending the equity method: loss of influence, partial disposal, change of status — The rule: stop, fair value of the retained interest, gain or loss in profit or loss","QST.IAS28.000062":"Ending the equity method: loss of influence, partial disposal, change of status — The rule: stop, fair value of the retained interest, gain or loss in profit or loss","QST.IAS28.000063":"Ending the equity method: loss of influence, partial disposal, change of status — From associate to joint venture, and the other way round","QST.IAS28.000064":"Ending the equity method: loss of influence, partial disposal, change of status — From associate to joint venture, and the other way round","QST.IAS28.000065":"Ending the equity method: loss of influence, partial disposal, change of status — Partial disposal with influence retained","QST.IAS28.000067":"Ending the equity method: loss of influence, partial disposal, change of status — The rule: stop, fair value of the retained interest, gain or loss in profit or loss","QST.IAS28.000068":"Significant influence: a rebuttable 20% presumption and indicators — The rule: the 20% presumption, rebuttable both ways","QST.IAS28.000070":"Initial cost, goodwill and the bargain purchase — The rule: goodwill or income, depending on the sign of the difference","QST.IAS28.000071":"At the edges of IAS 28: IFRS 11, IAS 36, IFRS 9, IFRS 10, IFRS 12 and the 2024 proposal — IFRS 9: long-term interests and the retained interest","QST.IAS28.000072":"Impairment of the investment: objective evidence and a test of the whole investment — The rule: test the whole investment as a single asset","QST.IAS28.000073":"Where IAS 28 applies: associates, joint ventures and the equity method — The rule: three relationships and one method","QST.IAS28.000074":"When losses exceed the investment: the cap and the liability — The rule: a cap based on the interest, and an order of allocation"}}