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ACCA F7 lectures Download F7 notes
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?
November 23, 2014 at 10:55 am
thanks alot. The lectures are very interesting!
November 10, 2014 at 6:45 pm
I just want to say that I have always hated Group accounts and now thanks to these lectures I’m finally learning it the proper way and actually loving it too. The lecturer is so much fun too!
November 10, 2014 at 10:33 pm
I think that I’m fun too, but not everyone agrees! Enjoy your studies! If they’re a chore, a burden, then that makes them so much harder
November 4, 2014 at 10:38 pm
Im trying to watch the F7 lectures but when i go into headings i find F3 lectures. at 1st i thought theres some error so i pressed play, and the content is from F3. then i thougth its just me, i looked at the heading again, its written ‘Other Reserves, Mid year acquisition’ but playing F3 lectures.. HELP please.
August 15, 2014 at 2:48 pm
Please I don’t understand how u get $1.65 per share on value of nci investment? I do understand the 32000 shares (40%*80000 shares)
August 15, 2014 at 2:53 pm
The video shows you the question page reference “page 42, Ivona and Guido”
may I ask you to read the question and, if you still have a problem, post again
August 20, 2014 at 11:59 am
ok thanks, I got it.
August 20, 2014 at 12:25 pm
Thank Heavens for that! I was about to write some ultra-sarcastic comment like “Which bit of the top line on page 42 do you not understand?” but thankfully you saved me from being so cutting
July 11, 2014 at 5:26 pm
Dear Mike Sir,
Regarding the doubt of (Ivona & Guido) Page 40, Example 6 (Ch-7):
Thanks for the clarification. I have now understood all the 3 cases of the nci investment valuation given in eg 6,7 & 8.
July 11, 2014 at 5:30 pm
Good – now practice the mini-exercises at the end of the notes. And watch out for the new set of notes to be uploaded soon – there are a LOAD more mini-exercises for you to practice on – all of them from past exam questions
July 14, 2014 at 2:33 pm
Thank you very much, Mike sir. I will practice the mini-exercises and wait for the new set of notes..
July 14, 2014 at 2:43 pm
July 10, 2014 at 6:13 pm
In the question (Ivona & Guido) Page 40, Example 6 (Ch-7):
What do we do of this information? ‘The Ivona directors have valued the goodwill attributable to the NCI at $5,000′.
Where have we used this figure in solving this question?
Here’s the full ques:
Ivona bought 60% of the shares of Guido for $100,000 when the Guido retained earnings were $40,000. The Ivona directors have valued the goodwill attributable to the nci at $5,000. Goodwill has not been impaired since acquisition. At 30 June, 2010, the respective Statements of Financial Position were
July 10, 2014 at 8:19 pm
OK, we need to know the value of the nci investment. (We need that in order to work out the goodwill on acquisition) Tell me the figure for the nci investment at date of acquisition and I’ll calculate the goodwill for you.
Hear from you soon
July 10, 2014 at 9:37 pm
Referring to:(Ivona & Guido) Page 40, Example 6 (Ch-7):
I am a bit confused with two things actually:
1) We have not used the amount ‘5000’ in the working 2 (goodwill). So, if we have not used it here, then how & where is this ‘5000’ used?
2) Secondly, while calculating the ‘Value of nci investment’, we do: 40% of 80000 shares= 32000. Then 32000x $1.65. My question is. how have we calculated this ‘1.65’?
July 11, 2014 at 6:33 am
Hi, I’m not surprised that you are confused! You appear to be looking at answers to two different questions at the same time.
Let’s deal with the $1.65 x 32,000 shares first. That’s actually part of the answer to example 8 on page 42 and has not much relevance to example 6 on page 40. Is that bit ok, now?
Now, $5,000 goodwill not used anywhere in the answer! Well, it IS in my copy of the notes. And, what’s more, it’s exactly where you would expect it to be – in working W2 Goodwill on page 154.
I suspect that you have been looking at the wrong answer again as you were with the $1.65 issue.
June 5, 2014 at 2:29 pm
Please mike,can you help me with the calculation of the nci investment valuation on example 10 chapter 7???
June 5, 2014 at 4:32 pm
sorry mickey don’t bother replying to this.i figured it out.thanks again
June 6, 2014 at 6:46 am
I’ve only just seen these posts from you. If you want to direct a question to me and know that I shall see it and reply, post it on the “Ask the tutor” page
June 6, 2014 at 9:13 am
May 12, 2014 at 8:16 pm
Please tell me the 55000 for NCI working 2 given in answers in the course notes is not correct??
April 26, 2014 at 3:19 am
I must say that this will be my first attempt at this paper and after following your lectures i am confident that i will do well. Your ability to simplify is amazing and I honestly wish you were my classroom lecturer here,
Thank you thus far for making the puzzle worth building ,,,,looking forward to sharing good news when i get results in August …:)
April 17, 2014 at 3:36 pm
I am confused as to why the Liabilities (160k + 190K) were not added to the Consolidated Statement of FP of the Ivona group (example 6). The proforma for CS of FP I have been following is this:
Goodwill (W2) xxx
Other Assets xxx
the total of the above two amounts balances off the total of the following amounts:
Share capital (parent only) xxx
Retained earnings (W3) xxx
Nci (W4) xxx
Up till now, this hasn’t been a problem. But for the Ivona-Guido example, the ‘Liabilites’ at the end has been completely omitted and the statement balances without it. I am very confused right now. Please explain this!!
June 6, 2014 at 6:48 am
I think if you look you’ll see that, instead of “current assets” we have “other net assets”
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