IFRS 13 Fair value measurement

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  1. Avatar of nikem nikem says:
    May 24, 2013 at 4:55 am

    Hi Mike,
    thanks for your time and efforts on this.
    Could you please explain why in the case of shares valued say at $1.50 just before acquisition, this valuation is not included in the W2 calculation of the FV of SNA at DOA( i.e the $1 shares will now be included as $1.50) rather you stick to the Balance sheet value, but then, you use the revalued NCA in that same calculation, why not stick to the book value also. However, this newer shares figure is included in calculating the NCI’s value @ DOA

    • Avatar of MikeLittle MikeLittle says:
      May 24, 2013 at 6:52 am

      The market value of shares has NOTHING to do with the company – it’s dependent upon supply and demand in the market and on market sentiment. The market value information is there only for the purposes of valuing the nci on a full, fair value basis.

      The fair value of the subsidiary’s net assets is their book, carrying value as adjusted for any fair value re-assessments and the book value of net assets is the same as the company’s figure for shareholders’ equity

      And shareholders’ equity is share capital + reserves

  2. Avatar of stuacca stuacca says:
    April 17, 2013 at 7:32 pm

    Is it okay only to listen to these lectures and not read the text book? I hardly have any time left. After listening to these lectures, am planning to practice the exam questions. please reply.

    • Avatar of Evgenia Evgenia says:
      May 10, 2013 at 5:44 pm

      Be careful of this approach. I was in the same situation as you for Dec-12 session, I used only these lectures (but practised not enough) and I failed.
      However, for F5 it was ok. I passed using only opentuition resources.

  3. Avatar of sueellen sueellen says:
    April 16, 2013 at 3:07 am

    how did you get 18 for the DNCA?

    • Avatar of merissa merissa says:
      April 18, 2013 at 10:23 am

      Sue 30,000/5 =6000 annually. Bought at the start of 2008 so at end of 2008 is one year & at the end of 2009 is another. We’re consolidating at the end of 2009. The asset is depreciated for two years 30000-(30000/5*2)= 18000. Carrying Value at the end of 2009 is $18k

  4. Avatar of nattyleonard nattyleonard says:
    February 26, 2013 at 9:56 am

    Oh my goodness- I didn’t actually dream about the cons ret ears song!!!!!

  5. Avatar of beatasz beatasz says:
    October 23, 2012 at 9:55 pm

    Hi Mike,
    I have a question regarding the Exampole 11 in chapter 7. I am listining your lectures and also using BPP book and just see that they do FV adj in W3 a bit different. And as much as yours explanation seems to be logical to me, the way they show in BPP book is easier to remember and no make mistake, but I do not fully understant why this can be that way.
    Would you mind to have a look and explain it to me.
    W3) D R
    per question 360000 100000
    FV adj (32000) (*) see below
    pre acq (20000)
    post acq 48000

    DOA Movement YE
    INventory 20000 (20000) -
    NDNCA 15000 – 15000
    DNCA 30000 (12000) 18000
    Goodwill RE SOFP

    The question is why this negative 32000 can be put in RE like that? hope my question makes sense.
    Thanks,
    Beata

  6. Avatar of wardaip wardaip says:
    October 13, 2012 at 6:27 pm

    excellent!!

  7. Avatar of ribberson ribberson says:
    October 7, 2012 at 3:31 pm

    Has the inventory been sold at year end? Why was this not part of the FV adjustment on the consolidated retained earnings?

  8. Avatar of ginduja21 ginduja21 says:
    September 17, 2012 at 11:59 am

    how you got NCI(w4) 88900?
    value @ DOA 64500
    post retained earnings 14400
    ans is 78900

  9. Avatar of emolas emolas says:
    August 21, 2012 at 8:51 am

    GUYS ,i hope yoy are all well.anyone with an idea/s on how best i can pass F7.this is the 3rd tym failing this subject.

  10. Avatar of badmanbrian badmanbrian says:
    August 21, 2012 at 2:09 am

    Thank U…

  11. Avatar of yojana yojana says:
    July 31, 2012 at 12:58 pm

    Excellent lecturer!!

  12. Avatar of noldis noldis says:
    June 3, 2012 at 3:00 pm

    An Excellent lectures which have quite good improvement compared to the previous version of these notes. Only question is – what about Associates? Why there are no examples on how to do the consolidation with associates? We know that in exam besides subsidiary we will have to include in the consolidation Associate as well :)

  13. Avatar of henok bekele henok bekele says:
    May 24, 2012 at 9:08 pm

    Thank you so much i am so happy with this vidieo lectures.
    God bless you

  14. Avatar of gas77 gas77 says:
    May 19, 2012 at 3:44 am

    That was great

  15. Avatar of onyekanmanc onyekanmanc says:
    April 16, 2012 at 9:04 am

    I’m really finding these lectures very helpful.
    God bless all the people behind this wonderful resource!!!

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