ACCA FR Chapter 23 Consolidated statement of financial position Questions
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
June 2025 ACCA Exam Results
20% off ACCA & CIMA Books
OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>
In Question 7, Where does NCI at acquisition coming from? There is no $24,000 figure in Question.
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!
how can access the materials i need
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.
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 %
In question 1, Please explain how the NCI Share is 1,200,000
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.
Please explain how the NCI Share is 1,200,000
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
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..
Question is, why are they deducting the retained earning figure of 56000 in question 2
Please explain how the NCI Share of 1,200000 is gotten
Hi ,I also do not understand how 1,200,000 has gotten
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.
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
Sir,
Could you please let me know where that 20,000(to calculate Impairment) came from in Q# 3?
Pleas explain how does that 20000 comes up in question number 3
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
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
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?
in question 1, can you please explain the fair value adjustment calculation ?
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
Thank you!
Hi there,
Please can you explain for Question 3 where the 20,000 that is multiplied by 25% comes from?
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)
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
Do you know how to get NCI at acquisition?