1. Avatar of tauraiversatile says

    I am happy, thanks Mike. However, the question reads differently from the one on the ACCA website…2 things, the one on the website is different from the one you are reading which is still different from the one in BPP revision kit. Kinda confused! Hope to pass, thanks once again :)

    • Avatar of MikeLittle says

      I don’t believe that goodwill fits anywhere into W4B. W4B is the nci share of this year’s subsidiary adjusted, time-apportioned profits after tax. Whereabouts are you trying to fit goodwill into that calculation?

      And why?

    • Avatar of MikeLittle says

      The deferred consideration is $2 per share on 18 million shares = 36 million. That’s the present value. To unroll it, we take 36 million x 10% = 3.6 million. But it’s only unrolled for 8 months until the year end So the finance cost is 3.6 million x 8 / 12 = 2.4 million finance charge and that’s added to the long term liability of “Deferred payment”


    • Avatar of MikeLittle says

      Point number (iv) in the Kaplan 2012 edition states “The nci has been valued at 30.5 million” and I believe that that was the source from which I prepared the answer. Kaplan were not allowed to reproduce the ACCA questions precisely so this must have been one of their “amendments”

      Sorry that this has resulted in your general confusion!

  2. Avatar of marky123 says

    Yes I calculated G/will to be 27,000 too. Im just wondering if Mike maybe using an old unmodified/modified version of the question from a text book maybe instead of ACCA ??
    Be interesting to know what that 30.5 was though :-)

  3. Avatar of marky123 says

    Hi just a quick one. In the video at 12m 40s, Mike writes in a figure of 30.5 bringing the total to 135.5. Where does this figure come from???? I cant see it or calculate it.
    Also, at around 17m, Mike gets Goodwill to be 29,500 yet ACCA standard answer is 27,000 ?? Why the differences?
    Any help appreciated thanks :-)

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