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August 4, 2020 at 9:17 pm
Why are there two “Associate” line items in the proforma? What is the difference?
November 3, 2018 at 6:39 am
So after the correction the profit for the year figure is 198 right?.
And the NCI will be 20%*(170*6/12)+(20%*20)=21
Thank you sir!
December 31, 2018 at 3:20 pm
The corrected profit figure is 198 but the NCI is 7.2.
I think you’ve used the PBIT figure of 170 when you should be using the PFY figure of 112.
June 22, 2019 at 2:52 am
Can you advise how to get 7.2 for NCI?
August 15, 2018 at 10:43 am
might be wrong but i believe there are a few mistakes in the solutions to example 2 chapter 24. .
1) the COS figure is stated as 1403 but is calculated as (1205+(6/12*990))
2) the solution does not deduct the goodwill impairment of $20,000
could you please clarify whether we deduct the impairment or not and whether we pro-rate the impairment .
August 15, 2018 at 11:50 am
Thanks for spotting the mistakes, I’ll get the notes updated to reflect the correct answer.
1) The cost of sales figure should be 1,700, which then makes the gross profit 585.
2) The impairment of 20 is added in full to the administrative expenses, so will give 135. It is not pro-rated as the impairment is done at the reporting date and therefore arises at that point, it has not accrued over the year so not necessary to pro-rate. Don’t forget then that the NCI will get their share of the impairment too as the NCI is measured at fair value.
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