On January 1, 2014, PT Laskar bought 20% of PT Mutiara's ordinary shares by providing a land with a book value of Rp 2,000,000 . The land has a fair market value of Rp. 2,500,000 . As of that day, PT Mutiara had net assets of Rp5,000,000 and a book value of Rp5,000,000 . There is no difference between the book value and fair value of PT Mutiara's net assets as of January 1, 2014. PT Mutiara reported a net profit of Rp800,000 in 2014. PT Mutiara distributed Rp 400,000 in dividends on November 1, 2014. There are indicators of a reduction in their goodwill derived through the acquisition of investments in PT Mutiara at the end of 2014. According to the most recent evaluation . The Goodwill of PT Mutiara, which is part of PT Laskar, is valued at Rp. 300,000 . Required: 1. If PT Laskar has substantial effect over PT Mutiara, create an investment journal for it and explain why! 2. What is the accounting treatment of an occurrence that occurred before the report was approved for publication? On January 1, 2014, PT Laskar bought 20% of PT Mutiara's ordinary shares by providing a land with abook value of Rp 2,000,000. The land has a fair market value of Rp. 2,500,000 . As of that day, PTMutiara had net assets of Rp5,000,000 and a book value of Rp5,000,000. There is no differencebetween the book value and fair value of PT Mutiara's net assets as of January 1, 2014. PT Mutiarareported a net profit of Rp800,000 in 2014. PT Mutiara distributed Rp 400,000 in dividends onNovember 1, 2014. There are indicators of a reduction in their goodwill derived through the acquisitionof investments in PT Mutiara at the end of 2014. According to the most recent evaluation. The Goodwillof PT Mutiara, which is part of PT Laskar, is valued at Rp. 300,000.Required:1. If PT Laskar has substantial effect over PT Mutiara, create an investment journal for it and explainwhy!2. What is the accounting treatment of an occurrence that occurred before the report was approved forpublication?

Goodwill-Goodwill is an intangible asset that accounts for the excess purchase price of another…

Answered: On January 1, 2014, PT Laskar bought…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2014, PT Laskar bought 20% of PT Mutiara's ordinary shares by providing a land with a book value of Rp 2,000,000 . The land has a fair market value of Rp. 2,500,000 . As of that day, PT Mutiara had net assets of Rp5,000,000 and a book value of Rp5,000,000 . There is no difference between the book value and fair value of PT Mutiara's net assets as of January 1, 2014. PT Mutiara reported a net profit of Rp800,000 in 2014. PT Mutiara distributed Rp 400,000 in dividends on November 1, 2014. There are indicators of a reduction in their goodwill derived through the acquisition of investments in PT Mutiara at the end of 2014. According to the most recent evaluation . The Goodwill of PT Mutiara, which is part of PT Laskar, is valued at Rp. 300,000 . Required: 1. If PT Laskar has substantial effect over PT Mutiara, create an investment journal for it and explain why! 2. What is the accounting treatment of an occurrence that occurred before the report was approved for publication?

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