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Group SFP – Example (Basic consolidation) – ACCA Financial Reporting (FR)

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  2. Hello sir. I have a question for you. In the NCI lecture you told that the formula to measure NCI for fair value method was NCI% x S Shares in issue x S share value. But u used a different formula to solve this question when calculating NCI. Please elaborate. Thanks

  4. Can someone explain to me why we don’t include share capital in the calculation? I try to relate with example 3 where we need to add net asset figure (share capital + retained earnings). Is it because the share capital balance remained unchanged since the acquisition?

  7. Hi why the full goodwill cannot be calculated as:
    1380/75%-(1000+480)=360
    as 1380/75%=1840 stands for the total FV of the Erica as of Jan-20X3, and (1000+480) is the total book value of net assets of Erica as of Jan-20X3, so the difference should be the total good will

    I guess it is because i did not use the NCI=450 as of Jan-20X3, but I still get confused why there is the difference?

    Thank you!

  8. Hello,
    I am confused why the S’s post-acq. profit is not from W2) Net Assets @post-acq.?

    Instead you take S’s RE differences (see below)
    w4) NCI = NCI @acq. 450000 + 25%* (660000-480000)= 495000

    If you prepare w2) then the S’s post-acq. profit will be : 4040-1480=2560

    In the example 7, you use the S’s post-acq. profit from W2) Net Assets @post-acq., but why not to do the same in this example?

    • Hi,

      We are given the NCI at fair value in the question, so we should therefore use it to calculate the NCI and goodwill.

      If we weren’t given the fair value of the NCI then we would have to use the proportionate share of net assets method.

      Thanks

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