# Changes in the Composition of a Group Example 3 part b

[jwplayer file=”mp4:vod/acca.opentuitioncom/p2/P2d2p2c2.mp4″ streamer=”rtmp://r.acca.opentuitioncom.netdna-cdn.com/play” provider=”rtmp” image=”http://opentuition.com/acca_lectures.jpg” html5_file=”http://d.acca.opentuitioncom.netdna-cdn.com/play/_definst_/mp4:vod/acca.opentuitioncom/p2/P2d2p2c2.mp4/playlist.m3u8″]

1. says

Sir Whats do you mean by “less our share of goodwill w3b on disposal”
not the whole GW
in my understanding
(eg our 80% nci 20% and GW 1000) then share of GW is 800 our share?

• says

@omerchamp, yes, unless it’s proportionally valued nci in which case our share is 1,000.

In addition, if we’re selling from subsidiary down to associate or lower, the goodwill is all the goodwill attributable to us.

If we’re selling some shares but keeping a subsidiary ( eg 80% down to 60% ) the goodwill calculation is the proportion of the goodwill which we are selling – so 20 out of the 80. And even then, if nci is proportional, then NO goodwill will be transferred on the part disposal

• says

@MikeLittle, Sir in example 4, in which total GW is 23000, per question 3000 nci and our share is 80% which mean it should be 18400(23000*80%) ?
why it is 2000

• says

@omerchamp, Do you mean “Why is it 20,000?”? ( You have written 2,000 ) Because if total goodwill is 23,000 and goodwill attributable to the nci is 3,000, then the rest of the goodwill is ours and 23,000 – 3,000 is 20,000

OK?

2. says

Dear Mike,

Could you kindly let me know the areas likely come out in Dec., 2012 exam for P2? And briefly what have come out in the last sitting June, 2012 will not likely repeat come out in the coming exam. Am i right.?

kamking899″gmail.com

• says

@bernardspyii, Hi

My guesses will appear shortly on the site. As for what came up in the last exam …. is there any reason why you cannot look that up for yourself?

3. says

this c/f and b/f thingie is quiet confusing specially in working 3 (retaing earning)

• says

@affera, Oh yes, I agree! The concept of an abbreviation for something as complicated as “brought forward” and “carried forward” must be extremely confusing. Thank Heavens that you’re P2 students and some of you can actually manage to cope with such difficult concepts.

For those of you who struggle, may I suggest you move to the advanced lectures in the early part of F3 studies where the use of these abbreviations are explained?

4. says

Hi tobiholloway,
The 175 is from calculating the NCI share of net assets form W2 Net assets =700×25% = 175.