Group SFP – Example (workings) – ACCA Financial Reporting (FR)
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Good morning All,
Should we mention in our Group SFP that the investment was 拢NIL? Or there’s no need to mention it?
Thank you 馃檪
Hi cornflakes,
You forgot to add retained earnings of J’s at acq which is 100 000. So NCI = (Net Assets + Retained Earnings) x 20% = 300 000 x 0.2 = 60 000
Dear Sir,
Is it possible to provide the amendment to the question as mentioned above.
I tried the NCI at FV as $200,000 X 20% =$40,000. and it would not balance, yet according to the working #3 and #4 this is the correct calculation.
Please explain. I’m confused.
Thanks in advance.
I did same, my NCI was 40000 and it balanced. Check ur goodwill make sure its 340k and ur Net asset at acquisition shld be 300k. I am wondering why d total share is 200 and total nci is also 200. Its doesnt seem right
Hi cornflakes,
You forgot to add retained earnings of J鈥檚 at acq which is 100 000. So NCI = (Net Assets + Retained Earnings) x 20% = 300 000 x 0.2 = 60 000
Hi Sir,
In Kaplan, test your understanding 1 of consolidated statement of financial position it says that Dickens acquired 16,000 shares of $1 on 1 jan 20X8, but in the working 3 they are taking fair value as $60000, why?
Hello sir,
I’m afraid I don’t understand why you assume FV of NCI to be the whole 200k USD. The phrase is “the FV of Jones’s equity was 200k at acq.”. And the equity share capital for Jones is 200k, so why don’t you consider the 200k for the total, making NCI FV at acquisiton only 20%of it (so 20%x200.000=40.000 instead of 200.000)?
Thank you very much .
Yes, you are right. FV of NCI should be $40,000 instead of $200,000.
1540 is attribute to parent I believe.
Even I was wondering the same,
Hi,
It will be clearer in the exam the far value of the NCI and I’ll make a minor amendment to the question to prevent any further confusion.
Thanks
Dear Sir,
Is it possible to provide the amendment as stated above. I tried the NCI at FV as $200,000 X 20% =$40,000 and it did not balance, yet this is the correct calculation according to workings #3 and #4.
Please explain as I am confused.
Thanking you in advance.
Hello, I would like to point out that It appears that this amendment hasn’t been made in the current notes. the Question still states that “the fair value of Jones’ equity shares acquired was $200k at acquisition”
the answer in the back is using the 200 as the F.v of the NCI as you have.