Group SPL – Group profit on disposal – ACCA Financial Reporting (FR)

Comments

1. Mainash1224 says

   July 12, 2024 at 4:39 am

   Hi Sir. I have a question.
   This is a question from BPP.

   On 1 January 20×8, Lentil Co acquired all of Chickpea Co’s 100,000 $1 shares for
   $400,000. The goodwill acquired in the business combination was $60,000, of which 40% had been written off as impaired by 31 December 20X8. On 31 December 20X5 Lentil Co sold all of Chickpea Co’s shares for $680,000 when Chickpea Co had retained earnings of $215,000.

   My solution is
   Proceed 680,000
   Non control interest 0
   Net asset at disposal (100,000+215,000)
   Goodwill (36,000)
   = 329,000

   But the answer in BPP is 280,000(680,000-400,000)

   Could you please help me?
   Thank you!!

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2. khorasiaasif@gmail.com says

   July 20, 2023 at 12:11 pm

   Thank you.

   Just for understanding, we have added NCI share before deducting 100% sale proceeds from N.A and Goodwill to arrive at Group Profit or Loss. Doesnt this profit or loss further get distributed between Group and NCI?

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