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April 8, 2014 at 1:24 am
just to clarify is the 1.65 a made up figure in example 6 ivona? if not can you please say how you got it? thanks.
April 18, 2014 at 11:39 pm
This figure is given in example 8 on page 42 of course notes.
March 27, 2014 at 1:01 pm
hello sir… where did u learn teaching techniques ???? the way u explain is the safest and easiest way to understand any hard part of question… u r the man……. wow..thank you..
March 5, 2014 at 4:53 pm
Dear Mr Little how did you arrive @ $53000 or 52800 for 32,000 shares in the example of ivona and guido ? it confuses me
March 5, 2014 at 5:37 pm
Hi, I don’t have the notes handily available at the moment but, do I not remember that I say immediately before, “now let’s assume that the shares are worth $XXXX” and that will give me the $52,800?
February 5, 2014 at 9:18 am
Hi Sir, I’m a bit lost in this lecture, for workings 2(goodwill) of example 6, where do we get $1.65 for each share? Is it not $1? Thank you.
February 5, 2014 at 11:00 am
Hi – what’s the name of the question?
February 5, 2014 at 11:33 am
It’s the Ivona and Guido question, example 6 with requirement:
Prepare the consolidated SOFP as at 30 June,2010.
It’s with working 2 that I’m confused with sir.
For value of nci investment, you did 40% x 80000 shares which equals to 32000 shares @ 1.65$ each. It’s the 1.65$ each part I didn’t understand where you got it from?
This consolidation chapter is a bit tough, but I won’t let it affect me, I’ll keep on practicing till I get a good grasp of it
February 5, 2014 at 11:39 am
is it not simply the value of the nci (53,000) divided by the number of shares held by the nci (32,000)?
It sounds like a throw-away line that I’ve mentioned as I was calculating the total goodwill.
The $1.65 is not integral to the question – it’s simply a little bit of “extra” information that we can derive from the figures as they work out. In fact, the more correct value would be 53,000 / 32,000 = $1.65625
September 9, 2013 at 10:09 am
hmm.. Why have we not charged any impairment of GW to NCI? Is it because we took the NCI of the Share Capital and multiplied it with the share price, so in effect it means that NCI is a % of the Subsidiary’s Net Assets? Please throw some light on this!
September 9, 2013 at 10:12 am
We have not considered the impairment at all! Why is that so?
September 9, 2013 at 10:17 am
Oops! I got it.. You’re coming to the impairment in the later part of the lecture! 😛 Thank u.. 😀
September 9, 2013 at 4:57 am
If the subsidary has a diffrnt year end date within 3 months dat of the parent??Den wat to do ….
ANd when If the period is greater than 3 months?
September 6, 2013 at 11:07 am
simple and straight forward lecture
September 6, 2013 at 7:27 pm
August 12, 2013 at 3:04 pm
easy to understand and good lecture thank you so much
July 4, 2013 at 8:15 pm
Great lecture, I understand now..thanks, your style of lecturing is so unique and interesting, it keeps me wanting to listen!
June 26, 2013 at 11:26 pm
I notice in the previous examples , regarding the goodwill working, the NCI is calculated as a % of the net assets consisting of share capital & retained earnings. However, in this question where the share price was increased to $1.65, 40% of the retained earnings was NOT included as part of the NCI value in the goodwill calculation, could you please explain why?
July 1, 2013 at 12:32 pm
oh, i got it…..its that way because its at fair value!
March 14, 2013 at 2:50 pm
My name is Alicia.
My question relates to the example 7 on page 41 (Ivona and Guido), were Guido shares were worth $1.65 immediately BEFORE the acquisition by Ivona. I am confused about W2 Goodwill calculation (Fair value of net assets @DOA). Why equity shares have value of $80000? It is not logical for me. Why not 80000 X $1.65 =132000? we are told that Guido shares were worth $1.65 immediately before the acquisition (@DOA). So far everything was clear and easy to understand and now I am a bit lost. Please explain. Many thanks
April 27, 2013 at 5:42 pm
The equity share value is $80,000 as there are 80000 $1 shares in issue. The share price is only relevant to the calculation of the NCI investment (80,000 @ $1.65 * 40%).
There are only 80,000 $1 shares in issue.
January 21, 2013 at 9:40 pm
Great lecture, penny starting to drop
November 12, 2012 at 6:54 am
i dont understand. for example 7 it says value of NCI is $55,000 in the question.how come for calculation of Working 2, the value of NCI came as $52,800? what happened to $55000?
November 12, 2012 at 10:58 am
@loopheichuen, Is this an Ivona and Guido example? If so, the same basic figures apply with the exception of me changing the basis of the nci calculation and for that reason I’ve changed the figures so that three different answers are arrived at.
Otherwise there would be a danger that you may think “there are three ways of arriving at the same figure and I’ll just concentrate on the one I find easiest”
You need to be comfortable in all three full, fair ways as well as with the proportional method
October 17, 2012 at 4:48 pm
Double check W1 – Ivona bought 60%. G is the subsidiary not I.
August 20, 2012 at 12:54 am
Like ur ambition in life……….u to funny Sir.
April 28, 2012 at 2:24 pm
CAN ANYONE HELP HOW SHARE PRICE $1.65 CAME
April 28, 2012 at 11:46 pm
@omeraminmalik, It’s given in the question, Ex-8, continuation of ex 7 but with a fair value of $1.65!!!
April 25, 2012 at 9:52 pm
So? is it FV of SNA or SNA?
April 25, 2012 at 9:51 pm
Ivone is paying $100,000 / 42,000 shares => $2.08 / share while the NCI are paying $1.65/share…which would mean that Ivone would end up at consolidation with a G/w of 20,800, OA 250,000 ->Total assets 270,800? Shares 70,000, Ret ears 120,000 and NCI 80,800…i think I m getting it wrong somewhere…
April 25, 2012 at 9:30 pm
Hi, at example 8/page 42..I can see why you are computing the G/W as you are doing it, but I don t understand at (w2) why you keep saying FV of SNA@doa if you are actually considering the SNA and not the FV of the SNA. In this example the FV of SNA @doa should be 80,000 shares x $1.65/ share, right?
April 21, 2012 at 4:36 pm
the calculation is incorrect. the shares that is used in the question he always said it should always only ever be the parent company which is $70,000 and not $80,000.
April 21, 2012 at 5:59 pm
@totalwork, Hi Totalwork. Give me a clue, which calculation? Which question?
I think you’re probably wrong, but I’ll do you the honour of checking
April 21, 2012 at 6:00 pm
@totalwork, and please reply on “Ask the tutor” Otherwise, there’s a good chance I’ll miss it if it’s just on “latest posts”
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