Non-controlling interests

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View all free ACCA F7 lectures >> This lecture is based on OpenTuition F7 course notes

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  1. Avatar of dknowles84 dknowles84 says:
    April 18, 2013 at 9:59 pm

    Hi, I know that there are various comments regarding the missing example for the notes, though does anyone know whether this ‘missing example’ is the last example that the lecturer goes through on this section?

    I have tried to skip through it as opposed to listening, though I cannot seem to find a clear break where the next lecture example may start. Thanks in advance!

  2. Avatar of hussey hussey says:
    April 12, 2013 at 6:40 pm

    @admin I know this has been asked multiple times before but could you possibly provide the exact question on page 39 that Mike is referring to in this particular lecture? From the looks of it, the question he is referring to is not part of the F7 course notes provided with the lectures; there is an entirely different question there instead.

    I have always appreciated your kind help and would be really grateful if you could please help me with this.

    Thanks in advance. :)

    • Avatar of admin admin says:
      April 12, 2013 at 7:50 pm

      Question was scrapped
      So ignore this part of the lecture

      • Avatar of hussey hussey says:
        April 12, 2013 at 8:05 pm

        Thanks for such a prompt response, Sir.
        Are you sure that the lecture does a good job of explaining the idea, fully and properly, despite that one question being scrapped? I mean, would you still suggest watching the rest of the lecture to get hold of the core idea explained?
        Pardon if the question sounds vague but I am asking just to be sure because I had once I noticed that the question didn’t belong.
        Thanks once more.

  3. Avatar of maat9 maat9 says:
    March 14, 2013 at 8:29 pm

    In the Course notes provided, there is problem on page 39. There’s an entirely different question (Remigjius and Ilona) there but it is not the one referred to by the tutor … solve this problem

  4. Avatar of marilynlojikim marilynlojikim says:
    March 2, 2013 at 2:54 pm

    on the 19th minute, you were talking about an example on page 39? What i have now is example 5, Remigijus and llona. Sounds like you are talking about diff example? Im confused.

  5. Avatar of uuuu uuuu says:
    February 17, 2013 at 6:57 am

    Same problem @ kionipc has.
    kindly resolve.

    • Avatar of alamsa alamsa says:
      February 27, 2013 at 3:48 pm

      Please see also last 3 comments:

      … it seems the question you have on page 39 is different from the one I have on the same page
      I have Remigijus and Ilona on page 39 not sure how that is!!!….can someone please help….thanks

  6. Avatar of kionipc kionipc says:
    February 12, 2013 at 12:07 am

    Using the Course notes provided, there seems to be a discrepancy on page 39. There’s an entirely different question (Remigjius and Ilona) there but it is not the one referred to by the professor… can some direction be given as to where I can find the question the lecturer refers to during his lecture.
    Many Thanks

  7. Avatar of joseph joseph says:
    January 25, 2013 at 5:06 pm

    I am just working out the examples in chapter 7 but it seems the question you have on page 39 is different from the one I have on the same page
    I have Remigijus and Ilona on page 39 not sure how that is or am I using a different set of notes

    Joseph

  8. Avatar of loopheichuen loopheichuen says:
    November 11, 2012 at 1:40 pm

    thanks! i understand already. :)

  9. Avatar of beatricenyirongo beatricenyirongo says:
    October 31, 2012 at 11:45 am

    this was good. at first I could not understand how net assets of NCI were calculated but now my problem has been solved loud and clear

  10. Avatar of wardaip wardaip says:
    October 13, 2012 at 1:04 pm

    One of the best lecturer ever!!

  11. Avatar of badmanbrian badmanbrian says:
    August 17, 2012 at 4:22 pm

    Dear Mr. Little,

    I figured it out now. Goodwill is calculated as at DOA so that is why no retained earning is included in the calculations.

    • Avatar of loopheichuen loopheichuen says:
      November 11, 2012 at 10:11 am

      @badmanbrian, but why, i still dont understand.

      • Avatar of MikeLittle MikeLittle says:
        November 11, 2012 at 10:50 am

        @loopheichuen, When a question says “….acquired on the date of incorporation ” that phrase is telling you that the date was the date that the company was “born”. The word “incorporation” in the context of company law is the act of creating a company.

        So, if we acquire the shares on the date of the subsidiary’s incorporation, the subsidiary cannot have had any time to conduct business and therefore could not have accumulated any retained earnings as at the date of acquisition

        OK?

        • Avatar of loopheichuen loopheichuen says:
          November 11, 2012 at 11:10 am

          @MikeLittle, omg it’s THAT simple? thanks!!! i understand now. but would it have been different if the word ”incorporation” is not there? if the word ”incorporation” is not there, i just do the usual calculation right? ie: add the $6000 in?

          • Avatar of MikeLittle MikeLittle says:
            November 11, 2012 at 11:37 am

            @loopheichuen, If the shares were not bought on the date of incorporation, then presumably the subsidiary will have amassed some retained earnings as at date of acquisition. So, normal working 2. But beware! Those retained earnings in working 2 are not likely to be the retained earnings as at the date of consolidation and we are looking for our share of the S post acquisition retained earnings

  12. Avatar of badmanbrian badmanbrian says:
    August 17, 2012 at 3:49 pm

    Question: Eg 5, the question states that “60% was acquired at the date of incorporation [01.01.2009] but the requirements is that we have to prepare consolidated FP as at 31.12.2009. Is not this 1 year, so why not include the retained earning of 6k in the goodwill cal.

  13. Avatar of kamndalirap kamndalirap says:
    August 6, 2012 at 12:23 pm

    its good material thanks.It would be more helpful if its availed to us in a downloadable settings because of different demanding circumstances, so that we can listen to these informative videos when when studying at appropriate place and not at the Internet cafe.please consider this.

  14. Avatar of kamndalirap kamndalirap says:
    August 6, 2012 at 12:19 pm

    its good material thanks.It would be more helpful if its availed to us students with work loads as well as demanding examination so that we can listen to these informative videos when not thing about work i mean when studying at appropriate place and not at the Internet cafe.please consider this.

  15. Avatar of RizEL RizEL says:
    June 30, 2012 at 1:29 pm

    on W3 of this eg 5 why havent we subtracted goodwill impaired since acq by 60% of 1000 as done in ur illustration before this example?

  16. Avatar of stormzout stormzout says:
    June 8, 2012 at 12:32 pm

    Nicely Clarified Sir, Thanks.

  17. Avatar of mrinal mrinal says:
    May 31, 2012 at 1:36 pm

    thank you so much sir…..its been very helpful….

  18. Avatar of taftedmelody taftedmelody says:
    May 10, 2012 at 5:14 pm

    you are so good sir thank you

  19. Avatar of y2jj y2jj says:
    April 26, 2012 at 1:34 am

    very helpful tip, the abbreviations, will definitely save on already limited time.

  20. Avatar of rosemaryinonge rosemaryinonge says:
    April 17, 2012 at 12:59 pm

    i wanted to find out how to calculate nci using the proportionate method.I am never sure what to use

    • Avatar of MikeLittle MikeLittle says:
      April 26, 2012 at 11:25 am

      @rosemaryinonge, Hi Rosemary. Nci on a proportionate basis means that you will need to calculate the fair value of the subsidiary’s net assets as at the date of acquisition BEFORE you can put in the nci investment valuation in working 2.

      So, set the working up woth the fair value of the consideration paid ( or to be paid ) by the parent on the acquisition.

      Then leave a line for the value of the nci investment.

      Leave another line so you have space to total the cost of the investment together with the nci value.

      Set out the fair value of the subsidiary’s net assets as at date of acquisition. Total that figure and put it beneath where you will ( soon ) put in the total “value” of the subsidiary ie our cost + nci value.

      The fair value of the subsidiary is then multiplied by the nci’s percentage interest in the subsidiary. Put that figure in line 2 of working 2.

      Add the cost of the investment to the nci value ( which you have just put in ) and that gives us the “value” of the subsidiary as at date of acquisition!

      Ok

  21. Avatar of itochukwu itochukwu says:
    April 14, 2012 at 1:00 am

    Good Lecture. Thanks.

  22. Avatar of davies2200068 davies2200068 says:
    April 7, 2012 at 4:29 pm

    I like your method of teaching and your point where you said, we can abbreviate topics as long as it makes meaning to the entire exam writting. Thanks Steve.

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