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Hello Sir,
Please I like you to tell me how you got 200 you divided Liene (300) shares with = 10/15? I have tried to figure out but I couldn’t it really distracts my attention
Hi,
If Kristina’s investment in Liene is $400,000 and Kristina paid $2/share then the number of shares purchased must be 200,000 ($400,000/$2).
Kristina therefore owns 200,000 out of the 300,000 which equates to 67%. I’d just leave it there in the exam as opposed to doing anything mathematical by trying to convert 200/300 to 10/15.
Hope this helps.
Thanks
Hello Sir,
Example 4 on page 23. I had gone through the notes
Please, What was the reason we didn’t use the FV of SNA at the DOA of Anda and Kristina in Liene to estimate NCI in the calculation of Goodwill since we were told in the question that NCi is valued on proportionate basis.
I had thought (40% of 570) would be added to the consideration and then less FV of SNA to comeby the goodwill? in this solution there was no NCI for Aink and A&K in L .
Please do also tell me what do I need to look out to suggest to me when despite the question suggesting NCI iis valued on proportionate basis i should go the route in the note.
Secondly , Ex5 with the dividend
Please why didnt we consider te dividend received by NCI in workings 4 ( NCI) just as wehad considered in the group retained earninng for the parent’s share of the dividend?
ii) also we didnt consider NCI share of impairment for the group in L i.e ( 40% * 1800)
LAstly in the CSF I don’t understand how we got the dividend in the current Liability (24,000) & (24,000) for k & L.
Thank you so dearly for your efforts.
Hi,
The NCI is valued using the proportionate share of net assets in Liene. The full goodwill method is used in Kristina as the fair value of the NCI is specifically given in the question.
As the NCI is valued using the proportionate share method the impairment is not allocated to the NCI as we only have the partial goodwill under this method.
Are the liabilities not the NCI% of the dividends paid out? 30% x 80,000 and 6/15 x 60,000
Thanks
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