ACCA SBR Specimen Exam 2 Question 1
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Thank you so much!!!
Thank you Sir, its lovely to listen to your lectures and i am addicted to it!!
why was 100 divided by 80 while calculating goodwill?
when using proportionate NCi you have to gross is up. its notional goodwill, as in the accounts of the parents you have to take into consideration 100% consolidation( parents share and nci share)
Thanks for the demostration
And also, we were told that explanations should be set out in paragraphs not in points or numbers. Since now it is computer based, is it okay to number the points?
compared to what i learnt from the example given in the lectures on convertible debentures, the effective interest rate was used to calculate the interest expense on the debt component but in this example i see it is the discount rate that was used to calculate the interest expense, So which is the right one ?
a bit late but the effective interest rate is used for the interest expense. if unavailable or not sure of the effective interest rate, then the simple discount rate can be applied to calculate the interest expense.