Group SFP – Other issues – ACCA Financial Reporting (FR)
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
20% off ACCA & CIMA Books
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Watts Co acquired 70% of the share capital of Pilkington Co on 1 January 20X2 for
$300,000.
The goodwill arising on consolidation has been impaired by $50,000 as at 31 December
20X5.
The share capital and reserves of the two companies as at 31 December 20X5 were as
follows:
Watts Co Pilkington Co
Share Capital $400,000 $150,000
Retained earnings $300,000 $200,000
At the date of acquisition Pilkington Co had retained earnings of $125,000. Watts Co
measures the non-controlling interest as the proportion of net assets of the subsidiary.
In the consolidated statement of financial position of at 31 December 20X5 what amount
should appear for the non-controlling interest?
A $105,000
B $90,000
C $82,500
D $60,000
My answer is coming $90000. Is it right?
Please help in this one
Answer is 105,000. Nci at acquisition is 82,500 while post acquisition nci is 22,500.
The Illustration for Mid-year acquisitions final value is wrong. Calculation results to $550,000 not $540,000.
Dear Sir,
Thank you very much for the lectures. Could you advice please how I should indicate in year SFP of a mother’s company the result (don’t paid) in subsidiary for a year?
Can I refer these FR videos for the preparation of DIpIFR ? Pattern and the level of questions is the same or different ?
SORRY THE PREVIOUS F7 VIDEO WAS MORE DETAILED THAN THIS CURRENT VIDEO AND I SUGGEST STUDENTS MUST READ OTHER RESOURCES IF THEY ARE TO PASS THIS PAPER. MANY TPOICS WERE NOT COVERED IN DETAIL IN CONSOLIDATED FINANCIAL STATEMENT.
I agree, the previous F7 lecture recordings covered more aspects such as the all important mid-year acquisition.
On the flip side, the tutor is doing a fantastic job with making the topics easier to understand.
Hi,
I have to disagree that you need other resources if you are to pass this paper. If you wish to score super high marks then yes, please use other materials, but there is more than enough in the videos and lectures to pass and if you work them thoroughly then you can actually do quite well.
Trust me, a mid-year acquisition is not the only thing that will be examined in the FR exam. If it is then it will be one mark in the entire paper. Hardly anything to get overly concerned with. If you’ve a good knowledge of accounting then you shouldn’t need any notes/lectures on it as it is basic knowledge of the SFP and SPL and how they link together.
Thanks
Thank you for this clarification