Reference no: EM133177724
Question - PT DIDI acquired 30% of PT DODO's ordinaryr shares on January.r 1, 2019, by providing a land with the book value of Ftp 1,000,000,000. The fair value of the land is Ftp. 1,500,000,000. PT 0000 had net assets as of that date with a book value of Ftp4,000,000,000. As of Januaryr 1, 2019, there is no difference between the book value and fair value of PT DODO's net assets. In 2019, PT DODO announced a net profit of Ftp?00,000,000. On 1 November 2019, PT DDDO distributed their Ftp 300,000,000 of dividends. At the end of the 2019, there are indications of a decrease in their goodwill obtained from the acquisition of investments in PT DODO. Based on the latest assessment, the value of PT DODO's Goodwill which is part of PT DIDI is Rp. 200,000,000.
Required -
1. Prepare an investment journal for PT DIDI for its investment in PT DODO if PT DIDI has significant influence over PT DODO and give your explanation!
2. How is the accounting treatment of an event that occurred on the date before the report was authorized for issue?