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Mr Little, sir
The parent has revenue of 372000, lets say.
It acquired subsidiary during the year and held it for 7 months. Subsidiary had revenue of 312000. One moths before acquisition S sold goods to P with value of 25000. P also owns associate. The revenue of associate is 32000.
What is consolidated revenue?
So, I disregarded associate revenue and pre acquisition sales of S to P. What i did is: 372000 plus 312000*7/12
Was i correct?
Thanks
Mr Little, as a follow up, even if associate sold some goods to P during post acquisition, or vice versa, we still dont deduct that figure from consolidated revenue, right? I mean abother what if we have this scenario?
Hi mike little Thank you for your lecture however I have a few queries. First in part (a) I do not understand how you got the 6million in the shares section 40mil+6mil=46 million and the pre acquisition of 6million also, in point (111) can you explain the question a little more I do not quite understand the terms. In part (b) you have cost ,profit & selling price is the selling price 560 000 or 5.6 million & how did you arrive at 5mths @1.2 mil=6 million
@natty2 said:
Hi mike little Thank you for your lecture however I have a few queries. First in part (a) I do not understand how you got the 6million in the shares section 40mil+6mil=46 million and the pre acquisition of 6million also, in point (111) can you explain the question a little more I do not quite understand the terms. In part (b) you have cost ,profit & selling price is the selling price 560 000 or 5.6 million & how did you arrive at 5mths @1.2 mil=6 millionNattu2, i have created this topic to ask my question. Not for you. If you want to ask something, create your own topic, so that Mr Little can clearly see the questions. Where is your logic?
Correct, associate’s individual line items are not adjusted for on consolidation
Natty, unfortunately Gvtftf is correct
Please start your own thread if you wish but don’t piggy-back on someone else’s thread
Natty – you’re going to have to tell me the question reference too, sorry
Which question am I looking at?
“Hi mike little Thank you for your lecture however I have a few queries. First in part (a) I do not understand how you got the 6million in the shares section 40mil+6mil=46 million and the pre acquisition of 6million also, in point (111) can you explain the question a little more I do not quite understand the terms. In part (b) you have cost ,profit & selling price is the selling price 560 000 or 5.6 million & how did you arrive at 5mths @1.2 mil=6 million”
Thank you, sir!
Btw, can we actually say that contingent asset is an asset? I mean, if the question asks to choose asset/liability from the four options, do we have to take contingent asset or liability as the right options?
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