Show your support by donating any amount. (Note: We are still technically a for-profit company, so your
contribution is not tax-deductible.)
PayPal Acct: 
Feedback: 
Donate to VoyForums (PayPal):
| [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, 5, 6, 7, 8, 9, [10] ] |
| Subject: 31.2 M ERG owns 19.9%Card Etc AG (equity accounted once reaching 20%and over) | |
|
Author: anonymous |
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: 04:03:32 10/06/02 Sun In reply to: anonymous 's message, "RE: ERG owns 19.9%Card Etc AG (equity accounted once reaching 20%and over)" on 22:10:39 10/05/02 Sat Take for instance Card ETC AG ---------------------------------------------------------- In financing and investing activities it doesn't actually state it is from Card---I would think it probably is---so the following relates to the 31.2 million dollar payment deffered but not dissalowed. --------------------------------------------------------- 0.79 million is issued in shares to ERG everytime that happens the Consolidated Group gets closer to 20%--with the holding currently sitting at 19.9% and that figure is quite dated---point 2 from N.E. Renton makes interesting reading--for it would mean then with ERG going over 20%---the 31.2 would be allowed by the auditor--as it would be equity accounted----it would also show that the business venture is creating revenues--for the only way ERG can receive shares in it----is by it growing itself---if it doesn't do that ERG wouldn't get any extra shares--so it must be---further shares in the consortium since last year have been sold to another bidder who paid higher. ----------------------------------------------------------- RE: ERG owns 19.9%Card Etc AG. The 31.2 million dollar payment deferred but not lost. ------------------------------------------------------------ N.E. Renton "Understanding The Stock Exchange Chjapter 823 page 157. ------------------------------------------------------------ 1) Where less than 20% of another company is owned, then the shareholding is treated as an investment and credit is taken only for the dividends actually received or receivable. ------------------------------------------------------------ 2) If between 20 and 50 percent is owned then "equity accounting" can be used, meaning that credit can be taken for all the profits, less the proportion belonging to the outside minority shareholders. (if any) ------------------------------------------------------------ 3) If more than 50% is owned, then the company becomes a subsidiary and this latter principle again applies: credit is taken for all the profits, less the proportion belonging to the outside minority shareholders. (if any) ------------------------------------------------------------ http://stocknessmonster.com/news-item?S=ERG&E=ASX&N=222869&P=D ----------------------------------------------------------- In addition, further shares were issued when unlisted convertible notes to the value o $7.178 million were converted into ordinary shares. The company also issued shares to the value of $1.43m in relation to the final dividend payment under a new Dividend Reinvestment Plan. The company also received a dividend to $0.79m from a third party in the form of shares. ----------------------------------------------------------- Topic 5 Securities Institute Accounting policies "Painting the Picture." ----------------------------------------------------------- Equity accounting is applied by an investing entity if it has significant influence over the entity in which it holds an investment. This is a lesser influence than control, which is the criterion for consolidation. The entity over which significant influence (Triumphant--is a controlled entity) exists is called an 'associate entity'. ----------------------------------------------------------- Equity accounting seeks to recognise this situation by including these entities in the balance sheet at cost plus the proportional interest in the associated entities profit (or loss) less the dividend received and proportional interest in movement in reserves. This is a cost plus valuation. The profit and loss statement includes the proportional interest in the associated entities profit rather than the dividend. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Tax effect acc ERG owns 19.9%Card Etc AG (equity accounted once reaching 20%and over) | anonymous | 19:31:02 10/06/02 Sun |
|
||