Comments

  1. Profile photo of Swati says

    Sir,

    Is the ‘retained earnings brought forward’ question (Example 5, Ch 10 on Pg 63 F7 notes – is this a part of DipIfr exam December 2014? Because this particular topic was not given in the BPP book.

    regards,

    Swati

    • Profile photo of MikeLittle says

      Surely you will use it where a question asks for a statement of changes in equity – a quote from the syllabus

      “Prepare a consolidated statement of profit or loss, statement of profit or loss and other comprehensive income and statement of changes in equity for a simple group, including an example where an acquisition occurs during the year where there is a non-controlling interest.”

      OK?

  2. Profile photo of Swati says

    Dear Mike Sir,

    In the Example 4, page 62 of Ch 10 of F7 notes (Viktorija & Natalija) – I am not clear with the Working 4b (NCI)?
    NCI is calculated as 40% of (42000-2700). My confusion is ‘why are we deducting 2700 and not 20000 which is the dividend proposed? As in, why are we not doing: 40% of (42000-2700-20000)?

    Thanks in advance!
    Swati.

    • Profile photo of MikeLittle says

      What’s the working W4b song? They want
      “their share of
      this year’s
      subsidiary
      adjusted
      time apportioned
      profit after tax”

      Now, think where dividends are accounted – they are taken out of those profits after tax. So by applying the song to the subsidiary post tax results the nci are credited not only with their share of retained earnings but also their share of the dividend

      OK?

  3. avatar says

    Hi Sir, Chapter 11 – Accounting for investment in associates, example 2 Maris and Girts, we need to prepare the SOCI, in the question it says Dividends of $1500 and $400 respectively have been proposed.

    Maris has not yet accounted for the dividend from Girts which was proposed prior to the year end.

    What should we do? Thanks

  4. avatar says

    Hi Mike,

    I am a bit stuck with calculating Retained Earnings in the example 6 on page 64. I do understand there is no requirement to do this in the question however I would really appreciate if you could help me with calculating it and splitting to b/f and c/f. Thanks in advance!

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