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Hi.
So I just started with P2.Normally, I always practice the kit alongside the notes….So that I learn the application very well.. However, the questions in P2 consist of different parts of the syllabus..So do I need to cover everything before I am able to practice the kit?Hi,
Yes, in order to attempt the group accounting question then you will have had to cover the entire syllabus first.
There will be some non group accounting questions that you will be able to attempt once you have covered a particular accounting standard in the notes.
Thanks
Hi, in exam 1 of chapter 1, may you explain the number of retained earning at the date accquisition,
Your calculation:
RE brought forward : 64,000
RE for the year 2011 ( 5 months): 22000??? why you calculate this numberMy calculation:
RE brought forward: 64,000
RE for the year 2011 (5 months): 60,000*5/12=25,000Can you explain for me, please?
Hi,
We are making the adjustments to calculate the net assets at acquisition to be used in the goodwill calculation.
You are correct with your 64,000 opening retained earnings and adjusting for 5 months but the profit for the year figure of 60,000 needs to be adjusted for the 36,000 profit that was made on the internal group transfer of the PPE. If we remove this we get profits of 24,000. These are then pro-rated for the 5 months to give 10,000 and then we need to add on the inventory fair value adjustment of 12,000 to give the 22,000 figure.
Hope that helps.
Thanks
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