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FA

Group Accounts – Further Points - ACCA Financial Accounting (FA) lectures

VIVA Subject Guide
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16 Comments

  1. Raj Shekhar
    Hi, there's no notes available for this chapter in the free lectures notes.
  2. John MoffatTutor
    Yes there are - Chapter 25 :-)
  3. Raj Shekhar
    I think I had been using the old lecture notes but I have downloaded again the lecture notes from the website and it has the notes for chapter 25.

    Thank you!
  4. John MoffatTutor
    You are welcome :-)
  5. Standelous
    Please assuming a subsidiary was started with 5,000 and in the same year the parent issued shares for 10,000. In the consolidated statement of cash flows, will the proceeds from issue of shares be 15,000 or 10,000?
  6. John MoffatTutor
    In the consolidated SOFP it will be $10,000. Preparation of the consolidated statement of cash flows is not examinable in Paper FA (it is not examined until Paper FR).
  7. Standelous
    Thank you Sir.
  8. John MoffatTutor
    You are welcome :-)
  9. Sabyasachi
    Sir, will associate companies sum come in the exam?
  10. Ilkin Musayev
    Thanks a lot for the lecture and I have a question
    How about dividends from associates? How do we have to deal with dividends, lets say, when associated company allocated all its retained earnings for the year and we also got dividends? Are these dividends our investing income or we have to add them to our investment in associate in the SFP? Thats a little bit confusing to me
  11. John MoffatTutor
    Dealing with dividends from associates is not examined in Paper FA. It is examined in Paper FR :-)
    However dividends received from the associate is treated as income in both the parent company and as a result in the consolidated accounts. They do not affect the amount on the SOFP.
  12. Ilkin Musayev
    thanks a lot for the answer ;)
  13. John MoffatTutor
    You are welcome :-)
  14. John MoffatTutor
    I do not say that it won't show at all.

    If there is no consolidation then the investment simply appears in the accounts of the company owning the shares, at cost as usual.
  15. Kasi
    Mr John,
    But in your lecture note it says that if no consolidation, associates will be treated as a trade investment; non current asset in the SoFP, so how do you say it won’t show at all? This is pretty confusing. Is it that the it won’t include retained profits to the figure or it won’t show at all? Pls reply. Thank you
  16. Ermal
    i think it meant not show in consolidated accounts(as will be none), of course will be shown in own company SOFP

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