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Mike Sir… i am not getting the alternative way to find out the Cost of Associate which u mentioned in the lecture but not fine out in the notes… on page 14…. will u tell me….
Mike, thank you very much. You’re lecturer “from God”… Esp., humour and sarcasm makes me sick. 馃榾
Please, continue making video for opentuition.
sir but in the solution only alex div(2000*40%) is added not saulius div share (4000*25%)
@omerchamp, In one of your earlier posts you have written “how did 800 from alex come from”. This recent post which is now receiving my attention shows that you now apparently agree with the 800 from Alex. Does the question not say that Danute (?) has not yet recorded the dividend receivable from Alex? But does it not also show “Investment income” in Danute’s Statement of Income in the amount of 1,000. ( These are coming from me as questions because I don’t have the notes in front of me )
I seem to remember that we only needed to adjust for one of the dividends because the other had already been recorded. Am I correct?
Respected sir
yes div from S is already recorded in years profit of D
what a great memory you have sir.
@omerchamp, Why thank you Omer – and you are yourself a “champ”
respected sir
then why our share of dividend paid by S (ie 4000* 25%) added to our retain profit
@omerchamp, because of the Working 3 principle “H’s own + H’s share of S post acq retained – goodwill impaired since acquisition
how did 800 from alex come from
@omerchamp, Is it not our share of Alex profit after tax? Or, now I think a bit more about it, isn’t it our share of the Alex dividend which we have not yet ( according to the question ) recognised? If not, post again and I’ll look at the question
@Sir MikeLittle, cont…….
which is 1000 that will make our retain earning 6885 instead 5885
black out in half way
same problem , i can’t see the layout of consolidated statement
Hey I have been trying to watch these tuts but after buffering for like 4mins it starts playing then after like a minute it starts buffering again and goes to the start again and stops. Please help.
Is anyone having a similar problem?
I’m afraid it could be your internet connection cannot keep up with video data, make sure you do not download anything while watching lectures.. also please try at different times of the day.. maybe it will help..
Hi Mike,
Please can you explain why we didnt account for our share of the dividend from the JV yet we participated on the one from the Associate if we are to treat them the same?
Also why did we Consolidate the Rev on one and not the other? Is it because we already factored in our profit share via consolidation hence taking the 1000 would have been double accounting. Am getting confused. Do we or do we not Consolidate a JV. If yes the what was the equity accounting method about am really lost here.
Thanks Mike
@mmariba2000, Hi
Since the recent change, we are now no longer able to bring in the results of a jv using proportional consolidation. The only method now acceptable is the equity method – like we do for Associate companies. In neither situation do we bring the Associate nor JV dividends into the consolidated retained earnings because we have already brought in the profits out of which the dividend is to be paid.
However …. in computing the proof ( H’s own + H’s share etc etc ) the figure for H’s own must include the dividends received from the Associate and the JV. That’s for Working 3. We omit these dividends when preparing the Consolidated Statement of Income.
As for revenue, because now we apply equity accounting for both Associates and for JVs, we DO NOT BRING IN any revenue from these two entities. I thought that I had updated the notes to reflect that – maybe you’re using last year’s notes. In addition, I have not re-recorded the lecture, so the old lecture using the proportional method for the JV is still on the video.
Make sure that you have the 2012 notes and, if they are incorrect based on what I have just posted, do please let me know.
Thanks
@MikeLittle, the above recording of Danuta alex and Saulius…says the revenue and cost of sales is “one quarter of 50000 and 30000 respectively…and GP is one quarter of 20000.Whereas your above comment states its straight 20000 Gp (you said we do not take account of Associate revenue nor JV)”…which one is correct now?
@rooman, @MikeLittle…i guess the recording is using proportional method…i.e….holding company revenue + proportionate share of associate revenue…which is outdated…but kindly explain working 3…alex and saulis deduct dividend paid from their respective R.E…and then danuta adds dividend recievable fromalex (40% * 2000..this is written in above lecture slide….is this right?)
@rooman, When trying to prove the retained earnings figure, “H’s own plus ……” needs to be adjusted for any dividend income not yet recorded by the investor ( Danute ) But this is only for the purposes of proving the figure – it’s highly unlikely that Graham Holt will ask that
@rooman, Yes, the recording is using the proportional method and has not been replaced by a new recording, but my post above this explains that in my reply to mmariba