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ACCA F3 Group Accounts The Consolidated Statement of Financial Position (1a)
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Dear sir,
here all we see is the p company aquiring 100% shares of the s company, what difference would it make if it were only 50% ?
That is all dealt with in the later lectures on consolidated account.
Understood sir. but is it possible for parent company to pay more than share value of subsidiary company?e.g paying 30000 for subsidiary company share capital of 40000 plus retained earnings.thank u sir
Paying 30,000 would be paying less, not more!! That is possible, but not in Paper F3.
Sir
Why arent we adding subsidiary share capital in consolidated statement?
Because we are treating it as though it is one big company owned by the shareholders of the parent company.
Hello Sir
Could you please tell me why you did not consider goodwill for the first question?
hello Sir, while proceeding with this chapter i came up with this answer.. Goodwill arising in consolidation in 1st example is not accounted because P acquired S at date of incorporation! Am I right?
OR is it because the company has acquired 100% of S? and that’s why we are not considering goodwill arising in consolidation?
It was it was bought on the date of incorporation. If they bought later, then there could have been goodwill, even thought they were buying 100%. This is all explained in the later examples.
while listening to this lecture what notes do i refer to? i have downloaded the notes from this website but cant seem to relate this lecture and notes very properly.
I don’t understand your problem.
The lecture starts by working through example 1 in Chapter 22 of the lectures notes (which is on page 92).
thanks john for ur lectures….quite helpful..
m confused on whay we didnt add up the full retained earning instead we added only 7k
and why not share capital is added up in consolidation..
thanks
For share capital we only show the share capital of the holding company, because it is those shareholders who effectively control the entire group.
For retained earnings we include the holding company’s share of the post-acquisition retained earnings.
I do explain this in the lectures and it would be worth you watching them again – this is only the first of several lectures on group accounts.
In share capital, why we did not add up share capital OF S to get $35000
Because we are preparing statements as though it is one big company. The shareholders who control the ‘big company’ are the shareholders of the holding company.
hey
i have a cbe f3 exam next week
can you please help me…..
thank you
What help are you asking for?
If you have specific problems then ask in the Paper F3 Ask the Tutor Forum and I will try and help!
Hi John, Great lectures. One question I have is, when a company is acquired by the parent co. and they already have retained earning from years of business, who then ownes these. For example you are teaching that the retained earnings made from date of acquisition are owed to the share holders. I am just a little confused to what happens to the money made before? Thank you
The earnings made prior to the acquisition are part of what the parent company was paying for, and are therefore part of the calculation of the goodwill arising on consolidation.
As you watch the later lectures on Group Accounts, this is all explained (appreciate that this is only the first of several lectures, and the various ‘complications’ are explained gradually).
Thanks John and excellent lectures with a little humour!
Thank you for the comment 馃檪
Hi Mr John Moffat, thank so much for these lectures and Open Tuition. You dont know how much youv made my studying easier. I wish l had known this website ealier. ??
Thank you very much for your comment 馃檪
I have just completed watching the lectures and my CBE is next week…What can you suggest for me do in order to be fully prepared to sit the exam?
Practice as many questions as possible – practice is the most important thing of all.
Make sure you have attempted all of our little online practice test and try our online mock exam (they are both linked from the main Paper F3 page).
(The mock exam selects questions at random from a large bank of questions, so every time you attempt it you are likely to get different questions.)
If you have a revision/exam kit then work through every question in it.
Also attempt the specimen exam that is on the ACCA website.
how do i navigate to the next example 3 when the first lecture finishes?
You watch the next lecture!
Thanks a lot Mr. Moffat
You are welcome 馃檪
i was enjoying the lecture on consolidation but as you said we should turn over to example 3 how do we navigate this on our laptop
You turn over the page in the free lecture notes, and you watch the next lecture in the course.