Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Dec 2014 sec b Q 3
- This topic has 21 replies, 3 voices, and was last updated 8 years ago by MikeLittle.
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- April 25, 2015 at 9:32 pm #242724
Hi mike,
Non controlling interest in statement of financial position calculated by examiner does not include the impairment in good will..
I don’t seem to understand the examiners answer. Can you please show the calculation of NCI of that question(SoFP).
Regards
sidP.S: Love your lectures π
April 25, 2015 at 9:40 pm #242725Before I look at it in detail, please confirm whether the nci is on a fair value basis or is it proportional?
April 25, 2015 at 9:42 pm #242726Fair Value basis….
April 25, 2015 at 9:49 pm #242728The workings given in the Examiner’s answer is this….
(vi) Non-controlling interest in statement of financial position
At date of acquisition (w (iv)) 4,500
Post-acquisition from statement of profit or loss and other comprehensive income 300
βββββββ4,800
April 25, 2015 at 9:50 pm #242729Just for your information I have not started CSoP/L yet..
April 25, 2015 at 10:27 pm #242732According to working W2 in the printed solution, the amount attributable to the nci for this year’s profits is AFTER the goodwill impairment
Ok?
April 25, 2015 at 10:44 pm #242733According to working 2 profit after Goodwill impairment is 900 and 20% of that is 180..
So where does the figure 300 comes from??
If you have to get 300 you have to take 1500 which is post acquisition profit BEFORE goodwill..
Please clarify(With numbers if not asking for too much….)April 25, 2015 at 11:42 pm #242737I don’t honestly know! According to me (and obviously to you too) the nci on the sofp should be 4,500 + 280 – 100 = 4,680
Heaven knows what they’ve done! I’ll need to rework the question and, if I can decide what the answer has done, I’ll let you know
April 26, 2015 at 4:39 am #242745π
That’s exactly what i got…
But please let me know as soon as you figure it out!!!!!
Regards
SidApril 26, 2015 at 4:52 am #242746Also in that Question..
Inventory in CSoFP Where does the figure 1200 comes from…..If it is possible can you do the full question for me please???
April 26, 2015 at 8:11 am #2427541,200 is the inventory at the subsidiary – straight from the question!
April 26, 2015 at 8:14 am #242755I did this yesterday. There is a negative 120 which is share of depreciation and share of impairment and then a positive 120 which is a share of the revalued asset of 600×20% =120
April 26, 2015 at 8:15 am #242757So add the last 120 to 180 to get 300
April 26, 2015 at 8:25 am #242758Ah Robert, thank you! There’s an unrecorded gain in the fair value of the asset post-acquisition of 600 and the nci is entitled to 20% of that gain = 120
So 4,500 + 180 (share of post-acq after goodwill impairment has been expensed) + 120 share of TNCA fair value increase
Robert, the “negative 120 which is share of depreciation and share of impairment….” Depreciation has nothing to do with 120. It’s just share of impairment
But thanks anyway!
April 26, 2015 at 8:50 am #242768Thank you.
# In note 4 there is a CIT 400 i deducted it from Receivables and added it to cash. Is that Treatment right?
April 26, 2015 at 8:57 am #242770And what is the treatment for note 2 $ 1 million 10% loan notes…
How about it’s finance cost???April 26, 2015 at 11:12 am #242777Dr Cash and
Cr Receivables is correctApril 26, 2015 at 11:14 am #242779Cancel the investment of $1,000 shown in the parent against the $1,000 non-current liability shown in the subsidiary
As for interest, it should be accrued for the number of months that the loan note has been in issue!
April 26, 2015 at 12:17 pm #242783Happy π
Thank you….And is there any chance that Section B question comes from Cash flow…
I am not good at it…April 26, 2015 at 2:21 pm #242797Of course there’s a chance that it could be a cash flow question.
You’re no good at them? Then practice!
April 26, 2015 at 5:12 pm #242829π
April 26, 2015 at 7:21 pm #242841There’s no better solution π
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