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May 19, 2022 at 8:38 pm
Sir passed FA with 89% marks by just listening to your lectures. but now i am studying FR from other teacher and i am unable to clear my concepts. i wanna study your lectures of FR if available. thanks
John Moffat says
May 20, 2022 at 6:21 am
Congratulations on passing Paper FA 🙂
Our only lectures for Paper FR are those given by our Paper FR tutor.
May 18, 2022 at 12:58 pm
in the example 2 ” P acquired 60% of the shares in S on 1 January 2007 when the retained earnings of S stood at $6,000, the fair value of the non-controlling interest at the date of acquisition was $30,000.”.
When i calculate the the fair value of non-controlling interest at the date of acquisition, I got 26666.67 usd vs the given 30k usd. May you explain?
=(% of NCI in subsidiary / % of parent company control in subsidiary ) X Parent company investment in subsidiary
= ( 40 % / 60% ) x 40k usd
May 18, 2022 at 7:48 pm
But the question tells you the fair value of the non-controlling interest at the date of acquisition.
May 19, 2022 at 1:29 pm
Yes, i know. But if the question did not tell, is my calculation correct? 26666.67 usd ?
May 19, 2022 at 4:51 pm
No, because the question says that it is $20,000 !!
November 24, 2021 at 7:20 am
Thank you so much sir
November 24, 2021 at 4:02 pm
You are welcome 🙂
August 6, 2021 at 8:49 am
Why was the total goodwill of 44,000 taken in to the consolidated SOPF when the parent only owned 60% and paid only for the 60% of the shares of S
August 6, 2021 at 9:17 am
The consolidated SOFP is showing the total assets and liabilities of the group – not just the parent’s share of them.
January 14, 2021 at 8:37 pm
Sir, I have two questions.
1. What do we do if the subsidiary had pre acquisition retained losses?
2. In the exam, will we have questions where the parent is buying two companies or is buying one company and is an NCI in another?
December 9, 2020 at 9:21 am
wonderful lecture. sir i was wondering why we take the goodwill arising on consolidation as whole and yet P did not own S 100%. i feel we calculate the percentage of goodwill for P share in S just like we did to retained earnings. please explain.
December 9, 2020 at 10:01 am
We are treating the group as if one big company. If the parent does not own 100% then the part owned by the NCI is shown as owing to them separately.
November 18, 2020 at 12:34 pm
Well delivered lecture sir like always ! Make difficult things easier.
October 18, 2020 at 6:59 pm
I’m finally getting group accounting. Thank you!
September 9, 2020 at 6:45 pm
Enjoyed the lesson. But just wondering why when determining the value of subsidiary ( to calculate Goodwill) we only use S share capital,S retain earnings at acquisition and fair value adjustment . Why don’t we add value of assets for the Subsidiary at acquisition to determine the value of S ? Feel Goodwill end up being over stated .
September 10, 2020 at 8:50 am
The net assets of a business are always equal to the share capital plus reserves.
February 23, 2020 at 5:50 am
one of the best lectures i have attended
February 23, 2020 at 10:53 am
Thank you for your comment 🙂
February 19, 2020 at 11:53 pm
Dear Mr Moffat,
Now I understand everything, It feels so wonderful!
It’s virtually the same thing we have been doing when P acquires 100% of S. I hope my exam in 2days has a lot of this as questions. Thank you very much.
February 20, 2020 at 7:19 am
October 10, 2018 at 7:34 pm
hi Sir i didnt get the concept of Fair Value i mean we didnt pay it to the Subsidiary we just decided the value that should be why we are calculating it in our statements? Thankyou
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