• Skip to primary navigation
  • Skip to main content
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
    • BT
    • MA
    • FA
    • LW
    • PM
    • TX-UK
    • FR
    • AA
    • FM
    • SBL
    • SBR
    • AAA
    • AFM
    • APM
    • ATX
    • Dates
    • What is ACCA

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Changes in the Composition of a Group Example 1

VIVA
View all free ACCA lectures >>This P2 lecture is based on OpenTuition course notes, view or download here>>

[jwplayer file=”mp4:vod/acca.opentuitioncom/p2/P2d2p2a.mp4″ streamer=”rtmp://r.acca.opentuitioncom.netdna-cdn.com/play” provider=”rtmp” image=”https://opentuition.com/acca_lectures.jpg” html5_file=”https://d.acca.opentuitioncom.netdna-cdn.com/play/_definst_/mp4:vod/acca.opentuitioncom/p2/P2d2p2a.mp4/playlist.m3u8″]

Reader Interactions

Comments

  1. trebreh says

    November 13, 2012 at 7:21 pm

    Q. why the carrying value of the 15% not 100 + 24 ((360-200)x15%) ?

    Log in to Reply
    • MikeLittle says

      November 13, 2012 at 7:54 pm

      @trebreh,

      A. Which question?

      Log in to Reply
      • trebreh says

        November 14, 2012 at 2:39 pm

        @MikeLittle, In example 1. Is it because its a trade investment. and not a associate.

      • MikeLittle says

        November 14, 2012 at 5:53 pm

        @trebreh, Give me a clue here please! I don’t want to have to watch the video. Which page is it from in the opentuition course notes?

  2. syedwaqar says

    October 21, 2012 at 8:22 pm

    HELLO! MR LITTLE

    Sir please let me know if Parents own 55 % and in mid of year it buys further 25% ..AND question says good will is calculated on fair value basis and there is imapirment in year of suppose $1000…so when doing working “3b” we take part of good will as u did (25%/45%) of good will…the goodwill amount to be used for allocation will be post half year imparied amount related to NCI? i.e “impaired goodwill amount” own by NCI * 25%/45%???

    Regards

    Log in to Reply
    • MikeLittle says

      October 22, 2012 at 10:27 am

      @syedwaqar, Hi

      I suppose sensibly that the date of the 1,000 impairment is critical here. If a question were to state for example that “At the end of the year in an impairment review the directors assessed that goodwill should be impaired by $1,000”, then our share of that impairment would be 80% and nci share 20%

      If alternatively the question said that “2 months before the 25% further acquisition, the directors determined that goodwill needed to be impaired by $1,000” then the allocation would be 55% / 45%

      But that surely would be strange! It’s my understanding that the annual review for goodwill impairment takes place at the end of the financial year. If so, then it’s going to be an 80% / 20% split

      Log in to Reply
  3. syedwaqar says

    October 21, 2012 at 7:56 pm

    HELLO! Mr.Little!!
    Sir please let me know that if parent have initial 15% investment and then it buy’s further 60%….
    there is going to be a gain/loss to PARENT on deemed disposal…that gain/loss is going to be reflected in retained earnings of PARENT….

    Regards

    Log in to Reply
  4. Kuso says

    February 20, 2012 at 12:46 pm

    HOW DID HE ARRIVE AT FV OF 15% to be 130 000

    Log in to Reply
    • sodiqlawal says

      March 24, 2012 at 10:23 pm

      @1416785, He did it on a proportional basis based on cost of investment.
      (520,000 / 60% x 15%)
      However he said the fair value of original investment will likely be given in an exam, so you would not need to do this in exam. He forgot to add it to the question

      Log in to Reply
  5. dimple says

    November 24, 2011 at 4:03 pm

    Very good lecture. Thank you for same

    Log in to Reply
  6. neilbass says

    October 20, 2011 at 12:47 pm

    Hi Admin – is it possible to get a reply to my earlier queries please?
    Thanks

    Log in to Reply
  7. admin says

    October 19, 2011 at 11:03 am

    Lecture is starting fine!
    You are supposed to try and do it by yourself, and the tutor jut talks through it!

    Log in to Reply
  8. nausheenmoeen says

    October 19, 2011 at 10:18 am

    the lecture is starting from the middle of the example how to start up.

    Log in to Reply
  9. neilbass says

    October 15, 2011 at 11:13 am

    Hi also in W2 – is there no need to split out the Goodwill between group and NCI any more (previous lectures had the 3 columns approach, NA, US, NCI)? Thanks

    Log in to Reply
  10. neilbass says

    October 15, 2011 at 10:59 am

    Hi in W2 – if the NCI is valued at $200k, and the NCI have 25% (after A shareholding increases to 75%), couldn’t we then assume total value is $800k (4×25%)? Wouldn’t this then mean the FV of the original 15% would be the balancing figure – ie $80k?

    Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in