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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!
The missing example is not included within the lecture, however if you follow the lecture you can then work through the example.
What is the answer for W2 Goodwill? I would like to double check please.
Goodwill would be $4,000 but after impairment of $1,000, the goodwill on the CSoFP would be $3,000
@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.
Question was scrapped
So ignore this part of the lecture
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.
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
a little “please” just before “solve” won’t hurt pal. it pays to tread courteously
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.
Mr Little is on vacation at the moment, but when he is back we will get it sorted out.
Same problem @ kionipc has.
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
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.
Indeed, got me confused at this point.
Question to Mr. Little and admin: will the lecture be re-recorded?
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
thanks! i understand already.
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
One of the best lecturer ever!!
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.
@badmanbrian, but why, i still dont understand.
@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
@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?
@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
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.
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.
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.
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?
Mr Little please answer this question
@zelimkhan, Maybe it’s because the nci is valued on a proportionate basis? What do you think? Could that be the answer?
@MikeLittle, yep, it is. Ive already settled the matter. Thanks.
Nicely Clarified Sir, Thanks.
thank you so much sir…..its been very helpful….
you are so good sir thank you
very helpful tip, the abbreviations, will definitely save on already limited time.
i wanted to find out how to calculate nci using the proportionate method.I am never sure what to use
@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!
Good Lecture. Thanks.
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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