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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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 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?
Transcribed Image Text: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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