ACCA F7 Notes Chapter 7 Preparation of the Consolidated Statement of Financial Position
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for the questions above, are the answers available?
Have you looked at the end of the course notes? Or even at the course notes index?
Dear Sir,
I have a real life example as below:-
Papaya share capital at 1st August 2013 were $150,000 and retained earnings loss of $150,000. Mangoes invested $225,000 and represented 60% of Papaya share capital @DOA. The total share capital of Papaya @DOA is now $375,000.
As at 31 Dec 2013 (financial year end) the retained earnings were $310,000.
If I am to compute goodwill, is below method correct?
Cost of Investment $225,000
Value of NCI Investment $150,000
Total $375,000
Less: FV of Papaya NA @ DOA (Assume no FV adj @DOA)
Share Capital $375,000
Pre-Acq retained earnings ($150,000) ($225,000)
Goodwill (CSoFP) $150,000
If I am to compute NCI (40%), is below computation correct?
Value of investment $150,000
Share of Papaya post acq retained earnings
($310,000-$150,000)*40% $64,000
Total NCI (CSoFP) $214,000
So shall we consider 40% of goodwill in NCI?
Mei
Please cut and paste this into the Ask ACCA Tutor F7 page – it has no place here on this page relating to the lecture!
And please remember to do that in the future too 馃檪
ok will do
Surely working W2 in the answer includes $5,000 goodwill attributable to the nci! It certainly does in my copy of the solution!
Example 6
I notice only impairment of Goodwill will hit NCI. May I know why good will figure will not reflect in NCI?