Forums › ACCA Forums › General ACCA Forums › F3/FFA Consolidation helpp!!!!!!!!!!!!!!!
- This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
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- September 6, 2013 at 3:50 pm #139981
https://www.scribd.com/doc/166038746/F3-Consolidation-ACCA
Please click this link as it is not clear when i typed …
Thank you for all who cared to type detailed answers.
September 6, 2013 at 5:48 pm #139991The value of the NCI is the fair value at the date of acquisition (42,000) plus the NCI’s share of post-acquisition profits of Beta.
Alpha owns 90% of the shares and so the NCI is 10%. The earnings since acquisition are 160,000 – 90,000 = 70,000.
So the value of the NCI is 42,000 + (10% x 70,000) = $49,000.(There is something odd about this question (for F3 anyway) in that Alpha would normally be showing the investment in Beta at cost – which was 270,000 not 180,000. I don’t know where you got the question from, but anyway it does not affect the answer above.)
September 6, 2013 at 10:25 pm #140010How do you that alpha owns 90% of the shares??
September 7, 2013 at 9:51 am #140020The first line of the question says that alpha bought 90,000 shares. On Betas balance sheet there are 100,000 shares.
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