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    • We are! Are you confusing figures ‘brought forward’ with the equivalent figures ‘carried forward’?

      75% of goodwill has been impaired in the brought forward figures and the remaining 25% is impaired this year meaning that goodwill is fully impaired in the carried forward figures

      And that ties in exactly with the suggested solution on page 178 of the course notes

      • but why do we not split the goodwill impairment to parent and NCI. In other questions under working 4 we deduct the goodwill impairment apportioned to NCI right after adding the share of post acq RE. why not in this question?

      • Is this extract from the question maybe relevant?

        “It is company policy to value the NCI as their proportionate share of the fair value of the net assets”

    • That’s a chapter that I have left for self-study

      There are a couple of others in the notes but you can rest assured that all major topics are covered by lectures and all topics are comprehensively covered in the notes

  5. Sir i have a doubt in question 5 chapter 10.
    when we add consolidated retained earning that are brought forward ( 160,875) to the this year consolidated earning( 37825) as below it comes to the consolidated retained earning that are carried forward (198750)

    this years consolidated earnings

    Didziz Ansis
    Per question before tax 55 12
    divident payable -17 -8
    dividend receivable from sub 6
    44 4
    75%
    plus our share 3
    47
    less GW impared this year -9.125
    37.875

    Sir as i calculated this year consolidated earnings and when added to brought forward consolidated earning ( 160875) it gives consolidated retained earning carried forward

    But why is it not the case with NCI
    why W4a added to W4b doesnt give the value of NCI in W4

    please help

  7. hello, i do appreciate these lectures and they give me hope to go throught long journey.
    i got some problems on example 5.

    1. im little confused with “propose or declare dividends”
    -as we did in cs of FP, like Chapter 9, we have calculated dividends as parent’s and subsidiary’s both plus share of parent’s control over subsidiary. and in CS OF CI we removed dividends from subsidairy and right after profit after tax, we deducted dividends of parents company. now why only 6,000(8,000*75%)is considered in example 5?, why no deduction of 17 from P, and 8 from S? does it means it has difference btw declare, propose, and already paid like example 5.

    sry, as english is not my mother tongue, ther are lots of obstacles to understand fully especially words. but with ur clear and understandable lectures really help me to get power to do something. ill wait for ur replay thanks! so so so much

    • oh sir, there is one more!.sry

      2. page178, W4a, W4, W4b so here is what i know.
      W4a – i understood what it means but not clear about usage of this figure.
      W4 – this is Nci and will be presented in the cs of FP.
      W4b – this is NCi presented in the cs of CI.

      So, whats the meaning of W4a?
      Thank you alot.
      i wait for your reply really far away!

      • sir hahaha sry to write too often. i understand fully with under QnAs.
        seems as it is already appeared in P/L i dnt need to do it again with r’ble, p’bles.
        and as u said brought foward, carried forward dnt need particular in these examples.

        AND FOR LAST! PLEASE .
        3. example 6. had no problem to solve the question though i want to be clear that im doing right especially W3.
        since aquistion has been made mid-year, easy with W4. please make sure what i have done wrong on w3
        L G

        pre q 5200 1180*7/12(post acq)
        dividend -p (1700) (200)
        dividens -r 180(200*90%)
        total 3680 488.33
        our shares 90%
        439.5
        Cs of r.e 4119.5

      • sry sir, i got clear after reading under QnAs.
        for last here is my last last last questions.
        example 6. i had no problmes so solve the question though, i would like to check my calculation clear since W3) was wrong and seems i cant figure out.

        well W3)
        L G
        pre q 5200 1180*7/12(post acq)
        dividend-p (1700) (200)
        dividend-r 180(200*90%)
        total 3680 488.33
        our shares 439.5 90%
        cs of r.e 4119.5

        it supposed to be 5,819. please give me some help.
        thank you so so much! 馃檪

      • From what I gather you still have a problem with example 3 but I can’t see in example 3 any of the figures that you mention

        Please give me chapter title or, preferably, a page number with the example number and tell me again what the problem is that you don’t understand

  10. Dear Sir,

    Re Ch 10 Example 5,
    For W3b, why it have to subtract the full amount of goodwill as the question mentioned that ‘Goodwill had been impaired by 75%’, so doesn’t it mean 75% has been already deduct from the previous retained earining and what we have to do is to deduct the remaining 25%?

    Thanks

    • The working W3 song is …

      H’s own +

      H”s share of S post acq retained –

      Goodwill impaired SINCE ACQUISITION (just our share)

      OK?

      If we had been asked for the statement of profit or loss, sure, the only figure for goodwill in that statement would be THIS YEAR’S impairment

      OK?

    • Hi Sir,
      I have a problem with the example 5 chap 10.
      The consolidated statement of P&L is for the year. Why are we using the brought forward retained earning in our calculation.
      Why not taking directly the profit after tax and continue as usual to calculate the consolidated retained earning of the year that should match with the consolidated P&L as you explained in the video.

      Thanks

  12. Hi Sir,

    In examples 5 and 6 re Didzis and Ansis, Lasma and Goda respectively, can I confirm that I worked the calculations correctly and thus the amount will match with the Ret Ear please? Since in Example 6, I can’t match it, thus I think I am missing something from the Ret Ears out.
    Also, in Example 5, if I see the answers of Ret Ears it also doesnt match :(.

    if the ret ears do wana match, can you kindly tell me the figues?

    Thank you in advance.

    Marylise Sacco

  13. Hi sir

    For example 5 for W4 when you are multiply the MI % by PAT why would we not then multiply the number of years. Instead of the usual one year difference there was 8 years?
    so: 25% x 12 x 8 = 24

    • So let me get this right! You want to give the non-controlling interest (no longer referred to as a minority interest) not just 100% of this year’s profits! You actually want to give them 200%!

      We can’t go on like this – next year are you going to give them 225% of next year’s profits and then 250% of the year after

      Just pause for a minute and recollect the title of the statement of comprehensive income and the period to which it relates.

      If I were to write out the heading in full, the third line of the heading would read “for the year ended (say) 31 August, 2015”

      If we include figures in that statement of comprehensive income for just one year, how can you justify giving the nci their share of more than one year’s profits?

  14. Chapter 10- Sir, I am getting benefit form example 1, 2 , 3 ,4 lectures but there is no lecture on example-5,6. I’m getting trouble to understand these sir. Thank you sir.

    • Is this Didzis and Ansis?

      Please be more specific – which figure(s) are you not happy with?

      (If you’ve got benefit from the previous 4 examples, then you should be able to cope with most of Didzis and Ansis!)

  15. I have got problems of example 5 in Chapter 10:
    1. W3 a retained earnings brought forward: from OUR SHARES direct minus the 100% of the impaired Goodwill, why not the 75% of the impaired GOODWILL and the rest 25% subtracted from W4 NCI (25%) brought forward?

    2. Dividends: the dividends has been paid ,therefore should be recorded dividend receivable from subsidiary rather than subtracted respectively in the answer W3b?

    • Is the nci on a proportionate basis?

      Re the dividend – it’s not been subtracted! It’s been added into the Didzis retained earnings.

      The dividend from Ansis has not been reflected within the Didzis figures – it should have been shown as investment income in Didzis’ profit or loss account, and it wasn’t!

      Ok?

      • But why wasn’t div p’ble by Didzis subtracted from his RE? Could it because it was already shown in the P/L?

        Also, why in this question are we doing RE and NCI b/f and c/f workings in the 1st place?, any purpose or do we need these figures for something else?

        Thank you very much btw Mike. I am doing P2 and your lectures have helped me to get on with consolidations basics (still learning) very quickly as I knew nothing about the topic given the F7 exemption.

      • Yes, it has already been deducted – that’s why / how it has appeared in the statement of profit or loss

        The brought forward and carry forward calculations were not needed for this question and, at the moment, they are not required for consolidation questions at the F7 level. They are necessary for the statement of changes in equity and that is neede for other questions, but not for consolidations

        So why are they here? It was a convenient time to show the class the principles of a statement of changes in equity!

        Ah! The problems of claiming exemptions!

        Post again if you have any problems

  16. I wonder why the dividend relating to the NCI is not considered at the final calculation for the pure profit of the NCI as we do for the group.

    In example 4 it should be 7720. Or is it completely irrelevant from the group point of view?

  17. Hello Sir,
    In example 4 of the course note, its written out of the 77300, 15720 relates to the NC interest. I thought it should be 16800 (ie 42000脳40%) or am I missing out on something.

  18. Sir, i have a question for example 5, why don’t you include dividend payable in W3b? In other example, when calculate retained earning, you always include both div rble and div pble, but not for this example 5. I feel a little confused.

      • Thank you, sir. Now i understand the answer, because the dividend has already been paid, so i don’t have to include it in working 3b.
        Can i ask you a question about example 5 again? Why impaired goodwill is included in Cost of sale when preparing the CS of Comprehensive Income?

      • Sometimes (mostly) the examiner will state “any depreciation and goodwill impairment should be included in cost of sales”

        Is that not the case in this question?

        If there is no direction for where to include the goodwill impairment, then cost of sales is as good a place as any.

        I imagine that, if there is no specific direction, then to include as a separately identified expense within the Statement of Profit or Loss would be just as acceptable

  19. Hi there,

    First of all, thank you so much for your videos and thanks to all the people behind this website – great stuff and it helps me save a lot of money from day release courses! 馃檪

    Anyway, example 4 on page 62 (Dec 2014 version) states that Viktorija had sold two thirds of these goods so does this mean pup should be 拢5400 and not 拢2700? I looked at the answers at the back and it still says 拢2700 – I am confused.

    Please help
    Thank you in advance ^_^

  20. Sir,

    Is the ‘retained earnings brought forward’ question (Example 5, Ch 10 on Pg 63 F7 notes – is this a part of DipIfr exam December 2014? Because this particular topic was not given in the BPP book.

    regards,

    Swati

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