ACCA F7 June 2011 Question 1 Prodigal

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  1. Avatar of Mdots Mdots says:
    April 26, 2013 at 1:29 am

    I have a few questions:

    -For the equity section, why are we not adding up subsidiary figures (given in the Q from SOFP extract) like “Other equity reserves= 3.2+ 7+ (.2 x 75%) {we did not include the subsidiary 2.2} but we did include the loss on fair value of equity 200 x 75%.
    -Also in NCI W4B Share in profit of Subs: Why aren’t we adding the Fair value adjustment of $1m and deducting Depreciation of 200?
    -For R.E calculation why are we not deducting PUP in that calc?
    - Shouldn’t we deduct the PUP from COS, eliminating the profit element?

    I’m a bit confused on the logic. Thanks for helping in advance.

  2. Avatar of gaabita gaabita says:
    June 10, 2012 at 7:45 am

    thanks for answering

  3. Avatar of gaabita gaabita says:
    June 9, 2012 at 5:49 pm

    I don’t understand why revenue computation is 450 + 240 * 6/12 – 40 instead of 450 + (240-40)*6/12. Is it correct to apportion the inter group transaction that we know for sure that took place after the shares exchange?

    • Avatar of MikeLittle MikeLittle says:
      June 9, 2012 at 7:22 pm

      @gaabita, not always. Sometimes Steve says that the subsidiary has dealt with its new parent throughout the year. In that situation, we should eliminate only the post acquisition revenue and cost of sales, and adjust only for the pup on any sales still in stock which had been transferred post acquisition

  4. Avatar of miked2107 miked2107 says:
    June 8, 2012 at 5:42 am

    Lecture keeps stopping!!!!!!!!!!!!

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