Daimler AG (2011) Notes to the Consolidated Financial Statements [extract] 7.29. Summarized IFRS financial information on investments accounted for using the equity method [extract] Engine Holding/Tognum [extract] With the completion of the public tender offer, the management of the Daimler Trucks segment assumed control of Daimler”s equity interest in Engine Holding. Engine Holding was therefore allocated to the Daimler Trucks segment as of September 30, […]

Roche Holding Limited (2011) Notes to the Roche Group Consolidated Financial Statements [extract] 2. Operating segment information [extract] Major customers The US national wholesale distributor, AmerisourceBergen Corp., represented approximately 5 billion Swiss francs (2010: 6 billion Swiss francs) of the Group”s revenues. Approximately 99% of these revenues were in the Pharmaceuticals operating segment, with the residual in the Diagnostics segment. The Group also reported substantial […]

Calculation of weighted average number of shares [IAS 33.IE2] Shares issued Treasury Shares shares* outstanding 1 January 2013 Balance at beginning of year 2,000 300 1,700 31-May-13 Issue of new shares for cash 800 2,500 1 December 2013 Purchase of treasury shares for cash 250 2,250 31 December 2013 Balance at year end 2,800 550 2,250 Calculation of weighted average: (1,700 x 5/12) + (2,500 […]

Increasing rate preference shares [IAS 33.IE1] Entity D issued non-convertible, non-redeemable class A cumulative preference shares of €100 par value on 1 January 2013. The class A preference shares are entitled to a cumulative annual dividend of €7 per share starting in 2015. At the time of issue, the market rate dividend yield on the class A preference shares was 7 per cent a year. […]

Marleboro Memorial Hospital is expecting its new cancer center to generate the following cash flows: Givens Years 0 1 2 3 4 5 Initial investment ($20,000,000) Net operatios cash flows ($4,000,000) ($6,000,000) ($10,000,000) ($12,000,000) ($25,000,000) a. Determine the payback for the new cancer center. b. Determine the net present value using a cost of capital of 12 percent. c. Determine the net present value at […]

Buxton Community is expecting its new dialysis unit to generate the following cash flows: Givens Years 0 1 2 3 4 5 Initial investment ($10,000,000) Net operatios cash flows ($1,500,000) ($2,000,000) ($4,000,000) ($7,000,000) ($14,000,000) a. Determine the payback for the new dialysis unit. b. Determine the NPV using a cost of capital of 11 percent. c. Determine the NPV at a cost of capital of […]

Letterman Hospital expects Projects A and B to generate the following cash flows: Givens (in thousands) Years 0 1 2 3 4 5 1 Initial investment ($2,500) 2 Net operating cash flows for Project A $1,800 $1,600 $900 $400 $200 3 Net operating cash flows for Project II $200 $400 $900 $1,600 $1,800 4 Discount rate for Part a 15% 5 Discount rate for Part […]

Accounting for post-acquisition changes in estimates relating to replacement awards Entity A grants an award of 1,000 shares to each of two employees. The award will vest after three years provided the employees remain in service. At the end of year 2, Entity A is acquired by Entity B which replaces the award with one over its own shares but otherwise on the same terms. […]

Accumulating paid absences An entity has 100 employees, who are each entitled to five working days of paid sick leave for each year. Unused sick leave may be carried forward for one calendar year. Sick leave is taken first out of the current year’s entitlement and then out of any balance brought forward from the previous year (a LIFO basis). At 31 December 2013, the […]

Interaction of IFRS 10, IAS 32 and IFRS 2 (fresh issue of shares) On 1 January 2013, the EBT of ABC plc subscribed for 100,000 £1 shares of ABC plc at £2.50 per share, paid for in cash provided by ABC by way of loan to the EBT. Under local law, these proceeds must be credited to the share capital account up to the par […]