Group SFP – share for share exchange – ACCA Financial Reporting (FR)
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At this timestamp https://youtu.be/ImD-uVIHh6g?t=577, there’s “b” marking of CR Share Premium jounal entry. What does it mean?
B = balancing figure
Why the Parent issued share $1 par, it is should be $3 per share?
$3 per share is the fair value, not the par value.
Hi,
First of all I want to thank you for very good lectures until now. I am start from the beginning and this is the first time that I have a question.
Can you please explain how you split share capital and share premium at the end.
Why you put price of 1$ for Harry’s shares? I can’t find that data (1$) in the question.
Regards,
Ana
As he said, he is assuming that Harry’s Shares are at $1 par value, like Sally’s Shares. This really should have been given in the example, but it shouldnt matter since the calculation will be the same regardless of the actual par value
Hii
When parent companies shares have been given to subsidiary , where will it be shown in the individual books of subsidiary ??
Where will it appear in the GROUP SFP ??
Hi,
There is nothing to record in the subsidiary as the transaction is between the parent and the former shareholders of the subsidiary, and not the subsidiary itself.
Thanks
Shouldnt the investment be 8m instead of 6m. Was that a mistake?
Hi,
No, the value of the shares that have been issued by the parent are $6 million, and so there isn’t a mistake.
Don’t get confused with the number of share acquired.
Thanks
videos 9 and 10 are missing – there is no info on assets in transit, and fair value adjustments, nor consideration. nor is example 7 in there. Why is so much missing?
Hi,
Possibly because there is just me doing all of the work on the subject and I’ve been very limited in what I’ve been able to do in the past year due to personal circumstances.
Thanks
Why the Parent issue share $1 par, it is should be $3 per share?