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In your lecture you have said for translation of SFP use CR to translate all assets and liabilities.
and HR to translate equity and pre-acquisition reserves. Than find out post acquisition reserve as a balancing figure to be able to use it it in NCI and R.E workings.
My question is will there be any change for the calculation of PAR if for example its been two years for parent that it has acquired subsidiary and there were few dividend payments during this period from subsidiary to parent.The method works irrespective of the number of years and dividends.
There are other methods (BPP uses a different one).
However, remember that in a FX question you will be asked to calculate goodwill and the current year’s XD in OCI. You won’t be asked to produce a full SFP.
Yeah BPP uses different approach. I was doing one of BPP kit questions and was finding it different and got confused when I tried to apply this approach.
I have tried to calculate only XD for OCI using same question with your method there is a little difference in numbers. I am getting 346 and in BPP answer its 320. should this be okay.
And how can I attach full question for your refence here its very long.You can’t attach question but you should not be wasting time here – 1 mark if you have the correct approach and 1 mark if you make no more than one mistake – 2 in total.
Remember passing this exam depends on you EXPLAINING why XD arise and and where they are recognised. Out of 1,000 candidates about 3 get the calculation correct but 500 don’t explain it.
Be calm
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