• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Chapter 4 Example 4, 5

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Chapter 4 Example 4, 5

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 22, 2017 at 2:01 pm #424460
    abdulahad92
    Member
    • Topics: 17
    • Replies: 36
    • ☆☆

    1) In example 4 when consolidating the Income Statement what I did was I decreased the intra group sales of Maul by 20 then took half of the remaining figure and then added 20 back to that one half and consolidated within the group 9 (same with Maul’s Cost of Sales)

    I did this because as the intra group transactions start after acquisition and the revenue and COGS figures of Maul must contain pre and post figures which I thought I was adjusting fairly. Now I am somewhat confused. However, the Gross profit what same as per my workings
    Kindly comment

    2)In example 5 the solution says carrying value = GW plus FV at acquisition plus post acq profits. Shouldn’t it be the 60% of the post acq profit?

    Regards

    December 27, 2017 at 10:00 pm #424966
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7177
    • ☆☆☆☆☆

    Hi,

    1) It doesn’t matter if your gross profit figure is the same, that will have happened purely by chance. If you watch the video then it will explain the answer fully.

    2) No. To calculate the net assets at the end of the year we need to take the net assets at the start of the year and add on the profits for the year. Remember we are looking at the value of the subsidiary as a whole.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • shahdiya@780 on FA Chapter 6 Questions Depreciation
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Salexy on Optimal pricing – equations- ACCA Performance Management (PM)
  • zan13898 on Sources of Finance – Islamic Finance – ACCA Financial Management (FM)
  • hana256 on Corporate Reorganisation and Capital Reconstruction Schemes (part 2) – ACCA (AFM) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in