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      • The video recording equipment is no longer as available to us as formerly. No, I haven’t re-recorded the section – I’ll see if I can find time over the coming close season, but thanks for reminding me

      • That would be great, sir. But as I have a exam this session and since the older method is not anymore applicable. So we will deduct the excess depreciation from the PUP and then deduct the net amount from the selling company’s assets?

      • Correct. So the only change from the recording is that, instead of adjusting the depreciation in the buyer’s records, the NET pup on the TNCA transfer is adjusted in the seller’s records

  3. I think you have loaded the wrong video because this one up here is exactly the same as the previous video which is “INTER-ENTITY TRANSACTIONS DIVIDENDS EXAMPLE4′ and it doesn’t talk about transfer of non current assets at all ………..so……can you check it out. Thank you again!

  4. I can view all other videos but I just can’t view the ACCA F7 TRANSFER OF NON-CURRENT ASSETS under chapter 8. I’ve tried it for two days with different devices and different browsers.I’ve used different computers and smart phones but still can’t view this video. It gives me the same thing, it is blank no buttons or whatsoever…I can see the comments under the video but there is nothing on the top where the video supposed to be except the big red title. HELP! Can anybody please help me out here!!!!!!!

      • Thank you so much!
        yes i can play it now and you are right I can’t access youtube here without some “breaking through”
        but thanks anyway!

      • I think you have loaded the wrong video because this one up here is exactly the same as the previous video which is “INTER-ENTITY TRANSACTIONS DIVIDENDS EXAMPLE4′ and it doesn’t talk about transfer of non current assets at all ………..so……can you check it out. Thank you again!

  5. Dear Mr Little,

    Thanks for this. It is all clear, just one little detail which is confusing me, in example 3 – I am not very sure where did we get the figure of 100 from? The non current asset had a carrying value of 80 and it was sold for 90, am really not sure why we calculated it as sold for 100 and therefore the PUP is 20.

    Thank you!

    • I think that, if you read the other posts on this string, you’ll find the answer to your question. The lecture MAY have been using an example I made up on the spur of the moment whereas the course notes should be correct

      • I see! Apologies – It did not occur to me to check the notes, true, the answer there is correct. Anyway, am glad that it is cleared up now, I was concerned there is a point I have missed which led us to calculate the pup on a S.P. of 100.

        Thanks Mr little.

  7. Mike, at the end of the lecture you said it effects both w3 and w4. for working 4 obviously it effects the amount of retained earnings to be apportioned between P&S but does the additional $50 get added to the NCI value? i.e w4 would look like
    Value of NCI x
    & Share of S post acq profits 325
    do we then add on the $50 of dividend it is to recieve?

    Thanks

  8. On p.52 in Example 3 it says about depreciations: “… with a full year’s charge in the year of purchase and NON in the year of sale”. Shouldn’t the depreciation surplus be 50?

    • @ silvikss,. Yes, i noticed that one too. Its the same principles whether 90,000 or 100,000 i guess, just the pup should have been 10 not 20. the double entry used 20 so CS of FP will still balance. Cheers

  12. Dear Mr Mike Little,

    FIRST OF ALL THANK YOU VERY MUCH FOR YOUR TIME AND EFFORT!!! I REALLY LIKE YOUR TEACHING STYLE.

    Is the answer in the course notes for example 3, chapter 8 correct (page 160)?
    I am asking due to the different approaches in your lecture and in the course notes in regards to the PUP and excess depreciation (Selling company / Buying company???).
    Shall we use the SELLING company ONLY in the exam, as mentioned in the answer to example 3???

    May I also ask you to always explain everything, as if all of us students wanted to achieve high marks. You mentioned in one of the earlier F7 lectures that certain figures could be written out as a Revaluation Reserve, but you did not go ahead in the end and proceeded with the figures in the W3 Cons. Ret. Ears calculation.. Since then I am wondering how to deal with the Revaluation Reserve.

    Once again. THANK YOU SOOOOOOOO MUCH!!!

    • The pup on an intra-group asset transfer should be adjusted in the SELLING company NET of the depreciation on the profit. It may be that the above lecture does it the old way where some was adjusted in the selling company and some in the buying company.

      It is now the case that both profit AND depreciation are adjusted in the selling company

    • @annz2020, There really isn’t a song for working 2.

      However, the working 3 song goes as follows ( H is the holding company, more commonly called the parent company these days, and S is the subsidiary. )

      “H’s own plus

      H’s share of S post acq retained less

      Goodwill impaired since acquisition ( just our share )”

      If there’s an associate involved then we need to introduce two extra lines – line 3 and line 5

      “H’s own plus

      H’s share of S post acq retained plus

      H’s share of A post acq retained less

      Goodwill impaired since acquisition ( just our share ) less

      Impairment in A since acquisition”

  19. Thanks admin for providing the YouTube link! I watched the vedio till 8 minutes and 37seconds left (where tutor says:”I made the figures up”), and it won’t go on any further…

    I also noticed that the answer shown in the vedio is different from that in the notes. Which is correct then?

    • @c0712, If I’ve said “I made the figures up” it’s because a student asked eg “Which page are we on?” or “Where are these figures from?”

      Now, before I started making the figures up, I will have said, for example “Say….” or “For example, if ….”

      …and that’s why the video is not consistent with the notes – it’s because I was making the figures up!

      • @MikeLittle, Thanks Mike, but I’m afraid I was misunderstood.

        I mean, for example 3 chapter 8, the answer you gave in the lecture is different from the answer given in the notes (December version).

      • @c0712, Ah, maybe! I used to teach the accounting entries for pups on TNCA transfers as entries in both the buyer’s and the seller’s records and that’s the way it is probably dealt with in the video lectures. I DID change the notes in the Summer, but I haven’t re-recorded to appropriate lecture yet.

        Sorry

      • So during the exam should we adjust both seller’s and buyer’s (the way its done in the video) retained earnings or just the seller’s (the way its done in the notes)?

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