OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
just confused a little – working 3 ( consolidated retained earnings )can also be for other types of reserves like – revaluation reserve?. We can get a question with consolidating other reserves like share premium or revaluation reserve. If yes please send a worked example to clarify.
Technically you should keep revaluation reserve separate from retained earnings. You are unlikely at F7 (and P2) to have a situation where there is any post-acquisition share premium movement
Just started using these lectures and I must say, thank you very much for such quality material made available to us for free.. This doesn’t mean I won’t ask questions later..lol.
why not we add premium of 1500 in CSoFS. Is it not like shares?
Because it’s pre-acquisition – it’s included in the goodwill calculation in working 2. Incidentally, the shares in the subsidiary also are part of the goodwill calculation and they too are NOT added into the CSoFP
oh yes sir, sorry i am slow. but this time i will pass my exam because of your lectures
How come when Mr Little is away from the screen and talking, I can still see stuff being written on the screen, are there ghosts in the classroom O.o! lol!
um, what happened to the media player? it was fine yesterday, how come its shrunk now? cant even view it on full screen..
Pls how did he get the 23,500 as the pre acquisition in working 3 of question RObertas and INgrida
Thanks. Have figured it out
How do we figure out if the 1500 wasn’t pre acq. share prm.?
Because share premium arises on the issue of shares and, in F7 ( and probably also in P2 ) there WILL NOT BE a share issue post acquisition by the subsidiary
I had the same question in mind, glad I read the comments before asking. The explanation makes sense! Thanks Mr Little!
Why do we not have share premium in subsidary incorporated into CS of FP?Beacause it was formed before acquisition?what’s the treatment for new share premium,that is generated by subsidary issuing new share after acquisition?
It won’t happen! ABSOLUTELY NOT at F7 and most probably not at P2 either
Where in the Balance Sheet do you add the Fair Value Adjustment (20,000)?
To whichever asset ( or liability ) which was the subject of the fair value adjustment – so long as it’s still in the possession of the group
why we have to add 6000 (goodwill) to retained earnings?
@ginduja21, because it’s like a “profit” – it’s called a bargain purchase. We USED to have a complicated way of crediting negative goodwill to the retained earnings over a number of years, but that method has now gone.
what is the wrong if i apply the goodwill in negative value?
I’m not sure what your question is! Can you re-post and make it a bit clearer?
How did that 25% of 28000 come from? I got the point about 25% but 28000 figure? Is it from FV of SNA @DOA???!!!
@s1234, yes its the SNA @ DOA…..25%* [3000+1500+20000+(7/12 * 6000)]
You must be logged in to post a comment.
ACCA F1 /FIA FAB Dec 2013 Exam was...
F4 Dec 2013 Exam was... Post comments
F5 Dec 2013 Exam was... Post comments
F6 Dec 2013 Exam was... Post comments
F7 Dec 2013 Exam was... Post comments
F8 Dec 2013 Exam was... Post comments
F9 Dec 2013 Exam was... Post comments
P3 Dec 2013 Exam was... Post comments
P4 Dec 2013 Exam was... Post comments
P5 Dec 2013 Exam was... Post comments
P6 Dec 2013 Exam was... Post comments
P7 Dec 2013 Exam was... Post comments
Please post your comments and vote in our Instant Polls
FIA MA1 exam was...
FIA FA2 exam was...
FIA MA2 exam was...
CAT FAU Exam was...
CAT FTX Exam was...
CAT FFM exam was...
Return to top of page
Copyright © 2013 · Privacy and Cookies · Advertising · Contact us · Sitemap · Log in