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ACCA FR Chapter 23 Consolidated statement of financial position Questions

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Comments

  1. Niander says

    March 6, 2023 at 8:15 am

    In Question 7, Where does NCI at acquisition coming from? There is no $24,000 figure in Question.

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  2. olti says

    June 28, 2022 at 8:02 am

    Hi again 馃檪
    I wanted to ask regarding the fair value of the consideration given when assets are transferred in order to acquire another company. If the buyer acquires another entity by transferring lets say cash and part of its PPE but its policy is to measure PPE at cost what will happen in this case, will the buyer revalue its PPE prior to acquisition and account for them accordingly (in OCI if lets suppose results in an increased fair value compared to the carrying amount)?
    Thank you a lot!

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  3. dede-elder says

    September 7, 2021 at 9:19 am

    how can access the materials i need

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  4. mbruno says

    September 6, 2021 at 10:32 pm

    Hi,
    I have a doubt related to Question 3 (Goodwill impairment).
    Once Swords acquired 75% of Rays, the goodwill is generated.
    Is the goodwill generated in the books of Swords? If so, why the 25% of the Goodwill impairment should be recognized in the NCI of Rays, If the goodwill belong to the 75% purchase and is recorded in the books of Swords?

    Could you please explain this to me?
    Thanks.

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    • adhi2001 says

      November 12, 2024 at 7:23 am

      As NCI was calculated at fair value, NCI is eligible for both gain or loss in the post-acquisition. Hence, Goodwill impairment must be shared by both NCI as well as Group according to their share of %

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  5. Sallywa says

    April 29, 2021 at 3:17 pm

    In question 1, Please explain how the NCI Share is 1,200,000

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    • Issouf says

      May 15, 2021 at 12:23 pm

      Hi,

      The value of Equity share is $2,000,000 for 50 cents per share so the numbers of shares is (2,000,000/0.5)= 4,000,000 shares.
      The NCI ownership being 30% hence 4,000,000 *30%= 1,200,000 shares belong to NCI.

      I hope that clarifies.

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  6. Sallywa says

    April 29, 2021 at 3:17 pm

    Please explain how the NCI Share is 1,200,000

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  7. andreazs says

    April 24, 2021 at 3:08 pm

    Hi,

    May I ask in Q4 why the post acq-n profit is not pro-rated? Acqn was 1.5.X3 and the year end is 31.8.X3, thus I would have thought the 50K profit is pro-rated by 4/12.

    Thank you for your answer in advance

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  8. accountant-@100 says

    July 26, 2020 at 8:07 pm

    In this question, how is it that the post acquisition profit was not prorated?
    From the question exactly 1760-1940 * 9/12 should have been the post acquisition R.E..

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    • sh4n1 says

      September 24, 2020 at 7:10 pm

      Question is, why are they deducting the retained earning figure of 56000 in question 2

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  9. jbemmy says

    April 29, 2020 at 5:30 pm

    Please explain how the NCI Share of 1,200000 is gotten

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    • momneva86 says

      November 19, 2020 at 12:59 pm

      Hi ,I also do not understand how 1,200,000 has gotten

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  10. keyroh says

    February 3, 2020 at 5:28 pm

    Hi, in Q2, Should it say 拢1,780,000 rather than 拢1,760,000? The rest of the answer is calculated as if this were the case.

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    • sh4n1 says

      September 24, 2020 at 7:24 pm

      I think its typing error.
      Can you please tell me why are they deducting retained earning (for NCI calculations)? I think it should be added back

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  11. taqi1 says

    October 14, 2019 at 11:44 am

    Sir,
    Could you please let me know where that 20,000(to calculate Impairment) came from in Q# 3?

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  12. tusharregmi says

    July 16, 2019 at 12:00 am

    Pleas explain how does that 20000 comes up in question number 3

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  13. tds11 says

    November 20, 2018 at 7:58 am

    In question 1, can you please explain how you calculate the initial 1’200’000? (I guess it’s the number of shares)
    Thank you in advance

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    • irakoze says

      February 24, 2020 at 10:13 am

      I also think it could be 4M shares @50 cents instead of 2M shares @ 50 cents, cause of 30%NCI Shares of 1,200,000

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  14. gorikrish says

    September 22, 2018 at 12:25 pm

    Normally , the fair value of NCI is given in the question.Is there any other way in which NCI value will be asked like the one in q.1?

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  15. gorikrish says

    September 21, 2018 at 6:07 am

    in question 1, can you please explain the fair value adjustment calculation ?

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    • P2-D2 says

      September 21, 2018 at 6:44 am

      Hi,

      The fair value at acquisition is the uplift of $2.4 million on the PPE(building). In the post acquisition period this will need to be depreciated over 8 years, so $2.4m/8years = $0.3m per annum. The acquisition date is 31 August 2014 and the reporting date 31 December 2014, so we need 4 months of depreciation as $0.1m ($0.3m x 4/12, or $0.3m/3, being the one third of the year).

      Hope that clears it up.

      Thanks

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      • gorikrish says

        September 22, 2018 at 12:23 pm

        Thank you!

      • hodge says

        February 20, 2019 at 7:23 pm

        Hi there,

        Please can you explain for Question 3 where the 20,000 that is multiplied by 25% comes from?

      • juku23 says

        July 25, 2019 at 11:36 am

        Hi,

        I believe there is a typo in the question where it says that goodwill is to be impaired by $20. What they meant is $20,000
        NCI is:
        NCI at acquisition
        Plus:
        post acquisition share of earnings
        Less:
        NCI share of goodwill impairment (in the questions NC% is 25% hence why 25% of $20,000 needs to be deducted from the value of NCI)

      • priyankarathod says

        December 25, 2020 at 6:00 pm

        Sir will there be a share of appreciation of building to NCI… In q:1)2.4/8*4/12*30%=30 share of NCI

    • sidra83 says

      April 25, 2021 at 1:04 pm

      Do you know how to get NCI at acquisition?

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