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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..
September 24, 2020 at 7:10 pm
Question is, why are they deducting the retained earning figure of 56000 in question 2
April 29, 2020 at 5:30 pm
Please explain how the NCI Share of 1,200000 is gotten
February 3, 2020 at 5:28 pm
Hi, in Q2, Should it say £1,780,000 rather than £1,760,000? The rest of the answer is calculated as if this were the case.
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
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?
July 16, 2019 at 12:00 am
Pleas explain how does that 20000 comes up in question number 3
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
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
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?
September 21, 2018 at 6:07 am
in question 1, can you please explain the fair value adjustment calculation ?
September 21, 2018 at 6:44 am
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.
September 22, 2018 at 12:23 pm
February 20, 2019 at 7:23 pm
Please can you explain for Question 3 where the 20,000 that is multiplied by 25% comes from?
July 25, 2019 at 11:36 am
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)
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