Comments

  1. Profile photo of questforknowledge says

    hi Mike if i may ask, i dont know if the question in the note is the same as the one you are calculating. in the notes the fair value of the NCI at the date of acquisition has been given. why do you calculate only the parents share of goodwill? why not the total goodwill.
    next question. i am using Kaplan text and i just read that non monetary assets which are carried at cost should be translating at the rate when they were bought. only non monetary assets which are carried at fair value should be translated at the actual rate. why use actual in both situations. i don’t know when the lecture was registered, maybe it was the old standard.
    thank you

  2. avatar says

    Dear Sir,
    Why don’t companies or their auditors calculate Goodwill in FOREIGN CURRENCY at the DOA and then yearly translate and see the Gain/Loss accordingly?

    If we have enough info @ EXAM to calculate Goodwill in foreign currency, is it OK to do so?

  3. Profile photo of c0olmat3 says

    Ey sir,
    you’ve told to translate everything in SOFP at closing rate, in BPP kit ‘Pre acqs’ are translated at closing rate, but ‘post acq’ is translated somehow using beta(B) value. I mean they have beta sign in the rate column..:?
    E.g. Dinar Rate. $m
    Post acq 8 . B 30

    • Profile photo of c0olmat3 says

      @c0olmat3, Oh got it, its the balancing figure, inclusive of Exchange Diffs.
      Well, there are many techniques in translating, all are allowed i guess.
      Either use closing rate(as you did);
      Using balcing figs to dtrmine post acq(bpp);
      Or using avg rate fr post acq(examiner answer).

    • Profile photo of MikeLittle says

      @azzal, I may be wrong because I’m answering this from memory, but isn’t 9,298 the nci’s share of the goodwill impairment? If it isn’t, post again and I’ll look the question up to give you a definitive answer

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