ACCA F7 June 2008 Question 1 Patronic

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  1. Avatar of rochyroch rochyroch says:
    May 29, 2013 at 3:41 pm

    Dear Sir;

    The ACCA answer does not include the 2 goodwill when doing W4B NCI

    • Avatar of MikeLittle MikeLittle says:
      May 29, 2013 at 4:28 pm

      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?

  2. Avatar of sarahlim sarahlim says:
    May 23, 2013 at 9:32 am

    Sir, can you help me to calculate finance cost ?
    coz the suggested answer included interest for deffered payment but i failed to calculate for it….

    TQ

    • Avatar of MikeLittle MikeLittle says:
      May 23, 2013 at 12:23 pm

      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”

      Ok?

  3. Avatar of sarahlim sarahlim says:
    May 23, 2013 at 9:27 am

    erm… somemore the goodwill is calculated as at 1/4/2007
    but for the impairment is at 31/03/2008 so cant calculate in the goodwill right?

  4. Avatar of sarahlim sarahlim says:
    May 23, 2013 at 9:26 am

    Dear sir,

    same problem cant find the 30.5 of NCI investment n cant find it in the suggested answer too
    but usually v calculate the goodwill muz include for NCI right?

    • Avatar of MikeLittle MikeLittle says:
      May 23, 2013 at 12:30 pm

      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!

  5. Avatar of willie91 willie91 says:
    October 23, 2012 at 1:15 pm

    can u adjust your handwriting its not that clear

  6. Avatar of marky123 marky123 says:
    May 14, 2012 at 10:31 am

    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 :-)

  7. Avatar of marky123 marky123 says:
    May 8, 2012 at 4:26 pm

    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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