# Group Accounts The Consolidated Statement of Financial Position (2c)

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1. sirr..big prob..am not getting any notes on the video..i can only hear You! Why?????? help!???

2. says

Faire value of NCI + % of Subsidary x Post aquisition profit

As per this formula there is no F.V of NCI hence as per kaplan it should be 3450..(15000-1200)*25%

Also i wonder for question 3 answer should be B

• says

You will be given the fair value of the NCI at the date of acquisition, unless it was acquired on the date of incorporation (i.e. the date that the company was formed).
If it was acquired on the date of incorporation then the fair value of the NCI is automatically the value of the shares held by the NCI. (This should also explain why the answer to question 3 is A)

3. says

hello sir I need to ask a question concerning the mock exams question (36) and (48) asked for the consolidated retain earnings of the group and i got both wrong because i added line by line. I notice both answers refer to the consolidated retain earnings of the controlling interest, am i suppose to always assume thatthis is what they are asking even if it is not written, for i am comfortable with all of the calculations just don’t want to make stupid mistakes. Also can you explain question 47 i don’t know how to get the purchases figure. please keep up the good work and thanks a million

• says

The consolidated retained earnings are always all the retained earnings of the parent company plus the parent company’s share of the post-acquisition profits.

4. says

Hi sir I need help here. There is a part of question from BPP as follows
During the year ended 31 October 20X5 Black (parent) sold goods which originally cost 12million to Bury. Black invoiced Bury at cost plus 40%. Bury still has 30% of these goods in inventory at 31 Oct 20X5.
May I know how to calculate the unrealised profit?
Thanks!

• says

If they originally cost 12M and there are 30% of them still in inventory, then the original cost was 30% of 12M = 4M.

However, Black will have invoiced Bury for these goods at cost + 40% and so Bury will be showing them in inventory and the cost to them. Since Black added 40% to the original cost, then unrealised profit will be 40% x 4M = 1.6M

• says

Sir is there calculation error in 30% of 12M=4M.. or you have rounded off the figure…???
Because 30% of 12M= 3.6M

Does that make a difference??

• says

Well if you go through the notes provided on this website… you’ll come to know the formula or format kind of thing for calculation of goodwill arising on consolidation..

•One way to find it is….
FV of consideration at date of acquisition
(Plus) FV of non controlling interest at date of acquisition

Now you’ll get the ‘total worth’ of the subsidiary ..

(Less) FV of net assets at date of acquisition:
Share capital of subsidiary
Retained earnings(pre-acquisitioned)

Now diff would be the goodwill on consolidation …

But if you look in previous example you’ll find an example in which there was a consideration for acquisition was 8000 …and we have checked it that it was equal to the share capital of 8000…

In this example we have given a consideration of 21600(consideration given to acquire our share in subsidiary)… checking this we’ll find that share capital is 24000 which is more than the consideration paid… it means that this share capital consists of both our and others share in subsidiary ….
As subtracting our share from this will thus give the others share i.e 24000-21600=2400 (The FV of NCI)

• says

I think this have cleared your confusion …:)

5. says

question 1
does anyone know why in calculation of the goodwill we add a fv (10% of 24000) = 2400 if we are calculating a goodwill in an example where P bought S on the date when S started to exist…

6. says

Example 7:

If question is silent, i should be using proportional value of NCI percentage multiply total of fair value of Subsidiary Net Assets at date of acquisition. ie
FV of SNA @ DOA
Share capital \$20,000
Retained Earnings NIL
Total = \$15,000 x 25% = \$5,000so, i would get
Cost of investment \$15,000
FV of NCI \$5,000 (per workings above)
Total\$20,000/- am i correct?
Thank you

7. says

Sir, How is goodwill zero in the above example 7???

consideration……. 15000

share capital of S …. 20000
less:NCI(25%of 20000).. (5000)
fair value 15000

is the above working right???

• says

@Miss A..,

consideration…. 15000
fair value of NCI@(25%of 20000)…..5000
20000
balance sheet value 20000
so goodwill Zero.

is it right now?

• says

@Miss A.., Yes. Cost 15,000 + ( value of nci at date of acquisition ) 5,000 = 20,000.

fair value of net assets at date of ac

• says

@MikeLittle, Yes. Cost 15,000 + ( value of nci at date of acquisition ) 5,000 = 20,000

Fair value of net assets at date of acquisition is also 20,000.

So, no goodwill

8. says

Dear Sir, for the first 6 mins of lecture , we only get to hear Mr.John.We are unable to see what he’s writing as the screen doesn’t show. I have read other comments on this video & came to know that many other viewers are experiencing same problem as me .Please resolve this issue.

• says

@Miss A.., Try closing the window and playing the video again. That worked for me! Hope that helps!

9. says

thank you open tuition these lectures were very handy especilly for my revision – i got 58%, i feel relieved, thanks once again

10. says

i don’t understand where the \$5000 for the NCI at fair value comes from? could some1 reply asap…thnxs

11. says

This is a good, helpful and informative lecture. I really appreciate the efforts put by the lecturer. What I am looking for?
Some solved Exam Problems with explanation. If it is possible?
Any thanks again for providing help in studies.

12. says