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October 10, 2017 at 10:58 pm
Question 5 seems to have the answer from Q4 at the bottom
October 11, 2017 at 7:35 am
Thanks for pointing that out – it seems that it’s the only place where the wrong answer is shown … if you had selected a wrong choice, the correct solution is explained on the answer page indicating where you had gone wrong
September 1, 2017 at 6:06 pm
sir,in the 5th qn (pup adj) …associate is the seller then why the pup is taken in the “investment in associate”
September 1, 2017 at 10:27 pm
Because (if you had listened to the recorded lectures and / or read the course notes) the way that I deal with pups that arise from transaction involving an associate is to deduct the full pup from the associate’s retained earnings and then bring into the consolidation only the group’s share of those reduced associate earnings thereby eliminating only the group’s share of the pup
The effective double entry is to reduce consolidated retained earnings and reduce also the investment in the associate
But all that is made perfectly clear in the course notes and in the lectures!
November 26, 2016 at 3:51 pm
Sir I cant find video lacture on Associate consolidation will you please help from where I can find lectures on Associate consolidation?
November 27, 2016 at 9:20 am
If it’s not on the site, it doesn’t exist
What’s this post doing on the practice questions recent comments? It surely belongs on the Ask ACCA Tutor forum
July 29, 2016 at 6:34 am
Hi Sir,I don’t see the difference between question and the rest of the questions as the question is asking what will be the value of the investment in the consolidated statement. Why the question 1 is 0 and others we compute the number as shown in the video ?
In question 5, why not remove the PUP from the profit after tax and take our share of the rest and add it to the initial investment ? as the good are still in his invetory fully.
July 29, 2016 at 7:52 am
Question 1 – the investment is the ONLY investment of Filiatra – so there are no subsidiaries and therefore no consolidation
Question 5 – 4/12 of the associate’s profit (time apportionment) = $28,000
Deduct from that the FULL pup of $4,000 leaving $24,000 adjusted post-acquisition retained profits
Taking 35% of that $24,000 gives us our share of this year’s associate, time apportioned, adjusted, profit after tax and that figure is $8,400
Does that explain it for you?
June 4, 2016 at 9:37 am
Dear sir, in Q5 I think in the consolidated level, the pup should be eliminated with the parent inventory, but not the investment is it right?
June 4, 2016 at 11:30 am
Not the way I do it! By reducing the associate’s retained earnings by the full amount of the pup before taking our share into consolidated retained earnings, we automatically eliminate out 35% share of the pup because we only consolidate our share of the associate’s retained earnings
Dr Reduce our Share of Associate’s retained earnings Cr Investment in Associate
February 12, 2016 at 11:11 am
Edmundo – two points!
1) Why not put your question on a separate post rather than tack it on to the thread relating to a completely different question?
2) Why not put your question onto the Ask ACCA Tutor forum?
In future, that would be the preferred route because I rarely look at “recent posts”
In fact, for the benefit of all, please repost your question on Ask ACCA Tutor for F7 and I’ll get back to you today!
February 10, 2016 at 9:08 pm
inv in assoc:850+10=860
what am i doing wrong?
February 11, 2016 at 6:59 am
The question asks you for the figure in the consolidated financial statements
The investment in Kyparissia is the only investment held by Filiatra ……… so no consolidation because there are no subsidiaries
February 8, 2016 at 10:36 am
I also could not get the answer in nr 5
Shares 50,000 x 1,5 = 75,000
Payment 377,914/1,08^3 = 300,000
Post acq ret ears: I deducted the PUP from the PBT 105,000 – 20%x20,000 = 101,000
Then I calculated the implicit tax rate (105-84)/105 = 20%
Next I calculated the PAT: 101,000 x (1-20%) = 80,800
Then time apportined: 80,800/12x4x35%= 9,427
February 8, 2016 at 10:15 am
Good Day Mr Mike,
In Question nr 4 my answer is 1,031,127 which does not show in the options.
Shares: 300,000 x 2,5 = 750,000
Payment: 330,000 / 1,1^2 = 272,727
Post Acq ret Ears: 84,000/12 x 4 x 30% = 8,400
February 12, 2016 at 7:47 am
yup…that is the same answer that i got…
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