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Group SPL - Example (MYA) - ACCA Financial Reporting (FR)

VIVA Subject Guide

20 Comments

  1. clodzy12
    sir i am very confused as to why we are adding the dividend from the subsidiary company ( maul) since it was already accounted for in the individual profit and loss statement of the parent company (vader) won't it be double counting it if we were to add it again in the consolidated statement of profit and loss?
  2. marachyz
    thank you so much, I passed first time because of your lectures
  3. Mohammed Omer
    why there is not new tax amount , after charging impairment to Subsidiary
  4. lloyd
    hahahah this genius lecture and 6 time winning of Liverpool kkkk
  5. lloyd
    kkkk u and Liverpool as 6 times EUFA winners
  6. Rajesh
    The Profit for the year for the sub i think is 46 and not 36. Could someone confirm this ? Thanks
  7. Gloria
    It is S's PFY (6 months) minus impairment = (6/12 x 112) – 20 = 36
  8. Jock
    why dont we take 80% of impairment?
  9. Will
    That’s what I was thinking too. My logic is that the parent has a share of the goodwill that is being impaired as well. So why is the subsidiary suffering the whole impact of the impairment?
  10. Will
    The figure 20 should be on the SPL because we’re consolidating all the costs but when it comes to attributing the profit, I think it should be different. 80% of impairment costs charged to the Parent and 20% of impairment costs to the NCI.
  11. Will
    My bad. If you put in the subsidiary’s column, at the end of they day you’re allocating only 20% to NCI and the other 80% goes to the group. So the method done by Chris is good.
  12. Mohamed
    I think it is the Same Logic exactly as with Revaluation Gain. It happens at a point in time
  13. David
    For a start the impairment is on Maul's goodwill, so that's why it would go in their column, but aside from that you ARE apportioning 80% of it to the parent anyway when you split out the profit allocation at the end. That's what the NCI calculation is for.
  14. diamond783
    Happy with that, well explained. Thank you :)
  15. m900
    i hate liverpool fc hahahahaha sorry sir
  16. peesto
    Well Explained
  17. Sarvin
    Well explained. Thank you Sir
  18. Tasha
    Don't we pro rate the dividend income from subsidiary ? Since we have acquired the sub mid way through the year. Doesn't that make us entitle to only 6m dividends which then are deducted in adjusting the investment income ?
  19. incepaul
    No - who ever owns the share(s) on the date they go ex-dividend is entitled to the whole amount of dividend per share that has been declared and approved.
  20. Mahgalathen
    Dividend income occurs at a point in time not over time like revaluation gain, as such it is purely based on shareholding% in the company. Date of acquisition for dividend income is quite irrelevant for consol.

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