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FA Chapter 23 Questions Group Accounts The Consolidated Statement of Financial Position (2)
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sir there was no NCI in q1 then why did you add 24000×10%
But there is NCI. The first line of the question says that X bought 90% of the shares in Y. So the other 10% must be owned by the NCI.
alright thankyou sir
You are welcome 馃檪
Yeey!! 100% .So proud of myself..Thanks Mr. John Moffat
馃檪
Sir In the question there are no Non current intrest but you add the NCI 10%*24000. In which method are you calculated.
Reply me
I do not know which of the questions you are referring to.
very informative lectures and i learned an awefull from the tutor
Thank you for the comment 馃檪
The Notes, and the video lectures, are as simple as they should be, and we are fortunate in having access to such useful resources. Thanks to OpenTuition, and thanks to the learned Tutor, Mr Moffat!
That’s right, Sir, we should do that. However, having said that, we also need to appreciate the fact that these quick checks are indeed very helpful in making sure we have correctly grasped what’s been explained in the videos. Thanks to OpenTuition, and thanks to the learned Tutor, Mr Moffat!
Thank you so much well explained got it all
Hi…in question 1 you used share capital of y??? U said we have to use share capital always of the parent company which is 62000.. please explain why u used the share capital of subsidiary company..
I do not say that at all !
When calculating the goodwill we take the consideration paid + the fair value of the NCI and subtract the net assets of Y at the date of acquisition (which equals the share capital + reserves at the date of acquisition).
Hello sir, The questions were not so much complicated as I faced on Kits published by KAPLAN and BPP, by the way, thanks a lot.
These tests are just meant as quick checks as you work through the lectures. That is why we say it is vital that you have a Revision Kit from one of the ACCA approved publishers!!
That’s right, Sir, we should do that. However, having said that, we also need to appreciate the fact that these quick checks are indeed very helpful in making sure we have correctly grasped what’s been explained in the videos. Thanks to OpenTuition, and thanks to the learned Tutor, Mr Moffat!
It was very useful, thank you Sir.
Thank you for your comment 馃檪
again I got 100 woow let me practice more using bpp and Kaplan thank you sir moffat
Well done 馃檪
In Q5, 100% of the share capital of Apple is considered in the non-controlling interest amount (instead of 30% as I incorrectly assumed ), however, in Q3, for the non-controlling interest we do apply only the percentage that is not controlled (10%). Does it have to do with the incorporation date? I did watch the lectures before attempting the practice question but I find this a bit confusing now.
Many thanks in advance.
But 100% of the share capital of Apple is not considered as the NCI. The NCI is the value of it at the date of acquisition (40,000) plus the NCI’s share (30%) of the earnings of Apple since the date of acquisition – exactly as I explain in the lectures 馃檪
Thanks, I think I see now where I went wrong.
You are welcome 馃檪
Hi. In question 4, i don’t understand why we are taking the whole 50000 of share capital instead of 70 percent of it. I always assumed if the parent company does not own 100 percent of the subsidiary then they shouldn’t take the whole amount rather the controllable percentage amount. please explain 馃檪
When calculating the goodwill, we compare the total value of the subsidiary at the date of acquisition (the cost of the parents share, plus the fair value of the non-controlling interest), with the total book value of the assets of the subsidiary at the date of acquisition (the full share capital of the subsidiary plus the full pre-acquisition retained earnings of the subsidiary).
(We used to do it differently, but the ‘rules’ changed many years ago).
I do suggest you watch the free lectures – this is all explained in the lectures (and you really should watch the lectures before attempting the tests).
It is good quiz . it gives me more challenge .
I need to more exerces.
Thanks
You must buy a Revision Kit from one of the ACCA approved publishers – they contain lots of exam standard questions to practice on, and practice is vital.
How many questions on consolidations are expected from the actual exam
Certainly 1 question in Section B, and likely several questions in section A.
If Y was acquired at a later date after incorporation then would it be wrong?I was confused as in questions they give you the value of NCI at date of acquisition and you have to add it to the consideration.
If the acquisition was at a later date, then yes – you would be given the fair value of the NCI.
thank you
You are welcome 馃檪
In question 1 why did you multiply 24000 *10% and called that value Non Controlling Interest.24000 is the share capital is it always like this i have seen that in questions they give you the value of Non Controlling Interest?
The 2,400 is the fair value of the NCI at the date of acquisition. Because it was acquired on incorporation the fair value of the NCI was simply their share of the share capital.
Have you watched the free lectures on consolidations before attempting the test?