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Group Accounts The Consolidated Statement of Financial Position (1b) – ACCA (FA) lectures

VIVA

Reader Interactions

Comments

  1. jaee says

    July 15, 2024 at 12:40 pm

    Thank you for the great explanation. Very clear.

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  2. smashcroft says

    October 8, 2021 at 5:33 pm

    When valuing the company you are adding share capital and retained earnings to get a purchase price; why are the assets and liabilities not included in the calculation of what the company is worth?

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    • John Moffat says

      October 9, 2021 at 7:52 am

      You should remember from the free lectures working through Chapter 2 of our notes that the share capital plus retained earnings is equal to the net assets of the company.

      However this is not the purchase price, it is compared with the purchase value to calculate the goodwill.

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      • smashcroft says

        October 9, 2021 at 10:40 am

        Thank you, I see that now. I am really very impressed with this whole series of lectures, I have never really understood accounting before and this is making it so clear and easy to follow.

      • John Moffat says

        October 9, 2021 at 1:57 pm

        Thank you for your comment 馃檪

  3. naiyaz says

    November 29, 2020 at 3:06 am

    I do have a confusion ..when calculating the net assets of subsidiary we took share capital of s which was 10000.. shouldn’t we take the share capital of 60000 which was the value for acquisition…am confused here.. please help

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    • John Moffat says

      November 29, 2020 at 8:47 am

      The net assets of S are equal to the share capital of S.

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      • naiyaz says

        November 29, 2020 at 2:54 pm

        Didn’t get!?

      • naiyaz says

        November 29, 2020 at 3:00 pm

        Okay I get I thought 60000 was for s but that was for p which bought … thank you..

  4. Asif110 says

    November 18, 2020 at 12:05 pm

    Beautifully made easy !

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  5. shakir7385 says

    September 16, 2020 at 5:46 pm

    Hi Mr. John

    In example 3; why we are taking fair value adjustments while preparing consolidated statement. Since the “S” was acquired in 2005 and we are preparing consolidated statement in 2009, there are 5 years in between (including both years). So, “S” would have added the revaluation impact in its books anytime in between these years since the revaluation was carried out on or before acquisition. In that case we simply would have been adding up fixed asset amounts appearing in both the companies statement. This example shows that “S” has not added the revaluation impact, how “S” could do that? How revaluation impact left remain un-adjusted for number of years? does it happen in real life?

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    • John Moffat says

      September 17, 2020 at 11:00 am

      There is no requirement for S to revalue. Most companies do not revalue their assets.

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  6. kamo7293 says

    February 8, 2020 at 10:11 pm

    Excellent lecture. Everything was laid out so clearly that I was able to complete Example 4 without help and got it all right

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  7. rehantemuslim says

    September 18, 2019 at 9:20 pm

    Amazing Lecture at a great pace. Enjoyed it thoroughly. Great Talented Teacher. 馃檪

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    • John Moffat says

      September 19, 2019 at 7:56 am

      Thank you for your comment 馃檪

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  8. nawal2000 says

    December 24, 2018 at 11:28 am

    Sir i wanted to ask do we take profit after tax as retained earnings, and if we do, should we take the post or pre acquisition?

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    • John Moffat says

      December 25, 2018 at 9:47 am

      The post-acquisition profits after tax.

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