Group Accounts – Further Points – ACCA Financial Accounting (FA) lectures
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Hi, there’s no notes available for this chapter in the free lectures notes.
Yes there are – Chapter 25 🙂
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!
You are welcome 🙂
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?
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).
Thank you Sir.
You are welcome 🙂
Sir, will associate companies sum come in the exam?
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
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.
thanks a lot for the answer 😉
You are welcome 🙂
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.
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
i think it meant not show in consolidated accounts(as will be none), of course will be shown in own company SOFP