PERISHER LTD

Investment in zalis limited

HARPUNEET Yujia ZHANG 41940415

Shenqiong SHAN 41843932

PERISHER LTD

Investment recognition

ACQUISITION DISINVESTMENT

AASB 128

Relates to the investment in associates

Applicable from 1st july 2008 to 30th june 2010

AASB 139

Relates to the investment in financial assets

Applicable from 1st july 2010 till date

PERISHER LTD

•Defines an associate•Significant influence•Not a subsidary or jv interest•More than 20% voting rights

AASB 128

•Recognition and measurement of financial assets•Financial assets four categories•Financial liabilities two categories

AASB 139

Application of accounting standards

PERISHER LTD

Perisher considered to have significant influence under para 6, more than 20% voting right

Initial recognition under para 11 to be at cost

Carrying amount $3,00,000

Associate AASB 128

PERISHER LTD

Para 22 relates to discontinuation of equity method

Recognition in accordance with aasb 9 after loss of significant influence

Retained interest measurement at fair value

Disinvestment AASB 128

PERISHER LTD

Recognition based on difference between

◦ Fair value of retained interest and proceeds from disposing part of interest and

◦ Carrying amount at the date equity method discontinued

Profit / loss recognition

PERISHER LTD

Fair value of retained interest and proceeds from disposal

Carrying amount when equity method discontinued

Resultant profit is $20,000

Profit / loss recognition

FAIR VALUE = $1,52,000PROCEEDS = $1,68,000TOTAL = $3,20,000

$3,00,000

PERISHER LTD

1ST JULY 2010

◦ AFS FINANCIAL ASSET $1,52,000◦ CASH $1,68,000

INVESTMENT IN ZALIS $3,00,000 GAIN ON SALE $20,000

Accounting treatment

PERISHER LTD

Initial recognition AASB 9- 3.1.1

Classification AASB 9 – 4.1.1

Measurement AASB 9 – 5.1.1

FV 1ST JULY 2010 =$152000 FV 30TH JUNE 2011 =$180500 CHANGE IN VALUE =$28500

Accounting treatment

PERISHER LTD

30TH JUNE 2011

AFS financial asset $28,500

AFS revaluation reserve $28,500

Accounting treatment

PERISHER LTD

Profit and loss◦ Gain on sale $20,000◦ Gain on revaluation $28,500

Balance sheet◦ Cash $1,68,000◦ Investment in zalis $(3,00,000)◦ Financial asset $1,80,500◦ Revaluation reserve $28,500

Disclosures

PERISHER LTD

Significant influence lost

◦ Disinvestment in zalis ltd of 21% resulted in loss of significant influence on zalis ltd.

◦ Zalis ltd was recognised as an associate under aasb 128

◦ Now it is recognised as a financial asset under provisions of aasb 128 and recognition under aasb 9

Disclosures

PERISHER LTD

Available for sale financial asset

◦ Since the investment does not have a fixed maturity date and is not for short term investment purpose therefore it is classified as available for sale.

Disclosures