first of all thank you for the lectures. secondly in question one part B. do we not subtract the un realized profit from NCI. Because in lecture example we add the unrealized profit with cost of sale and subtract it from NCI. but in here we add in cost of sale but did not subtract form NCI.
If there is inventory left that was sold from one of the company’s to the other company, then the consolidated retained earnings depend on whether the parent had sold the goods to the subsidiary, or the subsidiary had sold the goods to the parent. They will not remain the same at all.
I would like to ask you about the Q1 of Section B (parent-sub companies). In the last part (4 marks), are you getting some grades if you think that only two are correct and you choose for example B & C? I mean will you get 2 marks for that or you need to find all the correct answers?
meeena says
first of all thank you for the lectures. secondly in question one part B. do we not subtract the un realized profit from NCI.
Because in lecture example we add the unrealized profit with cost of sale and subtract it from NCI. but in here we add in cost of sale but did not subtract form NCI.
John Moffat says
Because the parent had sold the goods to the subsidiary. Therefore the parent had taken the profit.
The NCI is only affected is the subsidiary had sold the goods to the parent and therefore the subsidiary had recorded the profit.
meeena says
thank you:)
John Moffat says
You are welcome 馃檪
ahmadbasra says
We do this any method ..Retain earning remain same ….this is point.
John Moffat says
That is simply not true!
If there is inventory left that was sold from one of the company’s to the other company, then the consolidated retained earnings depend on whether the parent had sold the goods to the subsidiary, or the subsidiary had sold the goods to the parent. They will not remain the same at all.
bmaapatsane says
Can you assist me with assignment? i am doing introduction to financial accounting long distance but i am failing to understand
John Moffat says
You need to watch our Paper F3 lectures. They are a complete course for Paper F3 and cover everything needed to pass the exam well.
Stylianos says
Hello,
I would like to ask you about the Q1 of Section B (parent-sub companies). In the last part (4 marks), are you getting some grades if you think that only two are correct and you choose for example B & C? I mean will you get 2 marks for that or you need to find all the correct answers?
Thank you in advance!
John Moffat says
There is 1 mark for each one that is correct. So you would get 2 marks on what you suggest 馃檪
Stylianos says
Thank you very much.
John Moffat says
You are welcome 馃檪
libuseng says
how do I get to the specimen exam?I try but the only things I see is advetisments
Stylianos says
try this link
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f3/specimen%20exams/f3-specimen-j14.pdf
It is from the official website of ACCA.
John Moffat says
There is a big blue button above the lecture, on the right, that says ‘Download F3 Question Paper’ on it.
When I click that button, then I instantly get the question paper in front of me 馃檪