OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
ACCA F7 lectures Download F7 notes
November 2, 2015 at 2:22 pm
Please help. I watched all the videos for chap 7 last week but can’t access it and most of the other videos today. The intodution videos work for some reason. I am messaging from my phone because I can’t access this page and chat forums from my computer.
John Moffat says
November 2, 2015 at 2:23 pm
The lectures are working fine. Please go to the support page – the link is above.
October 7, 2015 at 12:04 am
DEFERRED CONSIDERATION ON PARENT ACQUISITION OF SUBSIDIARY
The parent acquired 75% of the subsidiary’s 80 million $1 shares on 1 Jan 20×6. It paid $3.50 per share and agreed to pay a further $108 million on 1 Jan 20×8. The parent company’s cost of capital is 8%. In the financial statements for the year ended 31 Dec 20×6 the cost of the combination will be as follows :
80 m shares * 75% * 3.50 210
$108m * 1/1.08 100
Mr. Little, i can’t figure out how they got 100 on the deferred consideration. To calculate a discount figure, don’t you need the initial investment($108), the cost of capital(8%) and the future cash flows?. Your assistance will be deeply appreciated as usual.
October 7, 2015 at 9:27 am
Not sure why you think we need the future cash flows! Surely we already know them – There will be an outflow of funds in one year’s time of $108 million. The present value of that outflow is $108 million / 1.08 cost of capital
Does that not make sense to you?
October 8, 2015 at 2:08 am
Thank You Mr.Little
November 11, 2015 at 4:45 pm
The PV of deferred consideration should be $50 because the payment is in two year`s time.
November 11, 2015 at 4:50 pm
Sorry, it should be $92.59 (108/1.08^2)
November 11, 2015 at 5:20 pm
Olalekan, you’re right. I’m just wondering whether the dates in the original question from Joseph were correct
October 6, 2015 at 4:34 am
Dear admin, it says the video was not found in this server. Also I cheeked the video all other browser (Firefox, Opera, Explore, Chrome and Safari) and it says the video is not available.
October 6, 2015 at 6:16 am
The video is working fine – the problem must be to do with your internet provider. Please ask on the support page (the link is above).
October 6, 2015 at 7:34 am
your provider or office is blocking access to vimeo.. try TOR browser
September 23, 2015 at 1:33 pm
how do I download the audio lectures
September 23, 2015 at 1:52 pm
Our lectures can only be watched online. It is the only way that we can keep the website free of charge.
You must be logged in to post a comment.
OpenTuition.com is dedicated to providing all accountancy students throughout the world with the resources they need to study for the major … Learn more