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ACCA F7 lectures Download F7 notes
February 6, 2016 at 12:00 pm
Hello, I cannot view the f7 lectures..
January 22, 2016 at 4:31 am
Greetings Mr. Little. In the example of Remigius and Ilona, where remigius acquired 75% of ilona, we calculated the value of the subsidiary assets by adding shares and retained earnings at acquisition (32 000+ 60000= 92000)
In the example of Ivona and Guido, Ivona buys 60% of guido for $100 000. I calculated the value of subsidiary assets by adding shares + retained. Just like the example of remigius, i took the total value of the shares ($1.65* 80000= 1320000). This gives the total value of the company as = 132000 + 40000(retained)= 172000. Our nci figure is therefore 68800.
Question= To get the value of subsidiary net assets at acquisition, are we not to add the TOTAL value of the shares to the retained earnings at date of acquisition/ your assistance would be appreciated sir.
January 22, 2016 at 8:57 am
Have you read the notes carefully? Have you listened to the lectures at all?
The value (book value) of a company’s net assets = capital employed
This is something you should remember from F3 days (or university if you were ill-advised and claimed exemption from F3)
Capital employed is share capital + reserves.
How can a company possibly control the MARKET value of its shares where that market value is determined by speculators, gamblers, and ordinary people that fancy a dabble on the stock exchange.
If you and I struck a private deal to buy and sell 400 Telecom plc shares at a price of $20 each, does that mean that the value of the company has increased four-fold even though the price on the open market is only $5
January 23, 2016 at 10:46 pm
I feel like an idiot. Once again sir, your help has been invaluable, thank you.
January 24, 2016 at 9:54 am
No worries Joseph and, don’t worry! There are lots of others that are worse 🙂
October 5, 2015 at 10:54 pm
How are you? I need to ask that why loan notes is deducted or added to Parents Investment and how we deal loan notes in CSFP?
January 12, 2015 at 6:36 am
As always awesome lectures
Can you please tell how calculate NCI value on example 7 Where goodwill of $5000 is given?
and What will happen if impairment of 10 % is used ?
Thanks In Advance
January 12, 2015 at 10:18 am
Example 7 is not related to example 6 where the goodwill figure is given (in example 6)
Instead example 7 illustrates the working W2 where the value of the nci investment is given.
Similarly example 8 illustrates the working W2 where the value of the nci is based on the market value of the subsidiary’s shares as at date of acquisition
Example 9 is asking you to rework the workings where you are told that goodwill is to be impaired by 10% – there is a brief explanation of what to do at the bottom of example 8, just before example 9
If you’re still having problems, post again
January 13, 2015 at 12:39 am
Thanks a lot sir
January 13, 2015 at 11:32 am
May 14, 2015 at 4:15 am
im a bit unclear as to what to do with the $5000 goodwill attributable to the nci (eg. 6) should i add it to the calculation of the value of the nci investment?
May 14, 2015 at 6:12 am
We need this information in order that we can arrive at the value of the nci investment as at the date of acquisition
Concentrating SOLELY on the nci (I show this in the video lectures) nci goodwill is equal to the value of their investment less their proportionate share of the subsidiary’s fair valued net assets.
Agreed so far?
We know the value of their goodwill – it’s given in the question
And we know the value of their proportionate share of the subsidiary’s fair valued net assets
Therefore we can calculate the value of the nci as at date of acquisition
January 2, 2015 at 3:59 pm
I didnt know how to start f7 earlier, but once I saw your lecture I really enjoyed it and now I am continued with that. You are so confident on what you say, makes me confident too. You also make us keep smiling with your phrases and thats so funny as well!
In this video I am curious how you got $1.65 per share at W2 of Example 6?
January 2, 2015 at 8:38 pm
Hi, Thanks for your kind words.
As for $1.65, I believe that you will find that information on page 42!
Am I right?
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