1. avatar says

    My first visit post exams and the first thing i want to do is to say a BIG THANK YOU! Failed two times and didn’t attend the exam once due to fear. Then i came here, followed only your lectures this time and passed F7. Thank you mike :)

  2. avatar says

    1) If company “A” holds 33% shares in another company “B”, and the other 67% shares are spread over different shareholders and no one share holder has major stake in the company “B”. Will Company “A” make a consolidated financial statement?

    2) If Company “C” owns 30% stake in company “D” and a subsidiaries of Company “C” owns another 25% in company “D”. Will Company C prepare consolidated financial statements?

    • Profile photo of MikeLittle says

      In answer to your second question, yes, without doubt. Because company C owns 30% and controls another 25% giving total control. Ah! But what if the subsidiaries don’t vote in the way that company C wants them to? Well in a very short period of time the company C directors will find themselves jobless!

      Now, your first question! It really all depends upon on how well spread the remaining 67% is. If the next biggest shareholder has just 0.0000001% of company B shares / votes, then it would appear that company A has effective control. But if the next biggest shareholder has, say, 30% of company B’s shares / votes, then it would seem likely that company A does not have effective control

      Do you see trouble ahead? I do, for sure! Auditors claiming that the investee should be consolidated under the principles of effective control whereas directors of company A resisting denying effective control! Watch this space – it could be fun!!!

      • avatar says

        At the end of the days , if the auditor says something, the company will have to follow them i guess.

        Thanks for clearing my doubts so fast :)

      • Profile photo of MikeLittle says

        Well, it’s not quite as easy as that! but there must be (and I’ve never experienced this) many heated discussions within the confines of the board room where auditors are claiming one thing and the directors are claiming the opposite.

  3. avatar says

    Hello Sir,

    I am planning to take f7 & f9 exam in June 2014. I am fully depends on your class and lectures. I am currently working so getting very less time to study, I hope your full support.

    Whether it is necessary to read the first five chapters before going to your classes.

  4. avatar says

    Thank you for the reply. I did not ask anything just an email from ACCA the also mention about the professional ethic module that I have to do. Does this mean I have to do all the four papers in one sitting or I can choose to do two per sitting?

    • Profile photo of MikeLittle says

      You don’t HAVE to do anything – literally, nothing.

      If you want to sit / attempt P1 in June, you will have to enter for all four F7, F8, F9 and P1.

      If you don’t want to attempt P1 in June, then enter 1, 2 or 3 F papers.

      The Ethics module has to be completed before you can become an affiliate. So even though you may have successfully got through all 14 F and P papers, you still have to complete the Ethics module.

      But you can attempt this at any time over however many hours / days / weeks that you want. There is no concept of pass / fail …. it’s just a question of having to have completed it before you can become an affiliate.

      My personal suggestion is that you should attempt it as part of your preparation for the P1 exam.

      Hope that helps

    • Profile photo of MikeLittle says

      Did you ask ACCA or did they just write to you with the information?

      Without the benefit of knowing any more about this, you are in fact eligible to enter for ONE of P1, P2 or P3 together with the 3 F level papers that are still outstanding

      Strange that ACCA should have written it and that they have specified P1 when in fact it could be any of those first 3 P papers

  5. avatar says

    Hi mr mike . i want ask about revaluation assets in consolidation F S

    On 1 January 20X7 Hardy owned some items of equipment with a book value of $45,000 that had a fairvalue of $57,000. These assets were originally purchased by Hardy on 1 January 20X5 and are being
    depreciated over 6 years.
    hardly is subsidery
    i know 12000 revaluation will put in GW calculation and TNCA in CoFS completly .
    but i dont know how can i deal with dep in CoRE and TNCA
    please help

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