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the Total Assets are : 6900
Total E + L = 6755 ( 2000 + 2175 + 2580)
It did not balance sir. Please to clarify me on this sir. Thank you
Yes its the same with what got.I’m confused. pleplease to clarify this sir. thank you.
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!
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?
please ignore this message, i made a mistake in calculating w2)
All is correct 🙂
How is it that we used the Fv method when it didnt say it in the question? I thought we were to assume that we are going to use proportional method unless stated otherwise?
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
sir the total asset and total E&L are not balanced after consol
why is that so?
TA: 6900
TE&L: (2000 + 2175 + 2580) = 6755
no your doing the addition wrong. here is the actual adittion in SFP
for ASSETS part we also incorporate Goodwill
hence:
6900+350=7250
for LIABILITIES we have to add NCI in equity hence:
2580+2175+2000+495=7250
HOPE U GET IT 🙂
Hi sir,
is the total of liability is 1840+740= 2580?
Kindly correct me if aim wrong
thank you
Thanks
Hi,
Good work tehreemkhan123! Yes, the consolidation balances provided that you include the goodwill in the asset total and the NCI in equity.
nazrin8434, yes the liabilities are 2,580.
Thanks
thanks nazrin
Hi please how did you arrive at the 2,175 figure in the total liabilities computation?
Hi, 2175 is group RE which was calculated in the lecture.
Thank you !
Yes its the same with what got.I’m confused. pleplease to clarify this sir. thank you.