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Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Teacher,
I think in Example 5, we should calculation ‘Carry value of 20% JONES’ shares disposal’ according to ‘Carry value of Net assets of JONES at 31/12/15 plus Goodwill of JONES at 1/1/15’ instead of use NCI (=14)*20/10.
Check with ‘Example 5 technical articles acca IFRS 10’ and with ‘exmple 3 opentution note’
My opinion for JONES’ shares transactions is:
Carry amount of net assets of JONES at date of change equity (31/12/2015):
= FV of net asset of JONES at acq-date (1/1/15) + Change JONES equity post acq-date (from 1/1/15-31/12/15)
= (75+35) + (45-35) = 120
(Assumption that net book value of net assets at acq-date = FV of net asset at acq-date)
GW at acq-date (1/1/15) = 23 (for calculated above)
Therefore Carry amount of 20% share disposal = (120+23)*20% =28.6
So double entry:
DR: Cash 35
CR: NCI 28.6
CR: RE 6.4
I think, In example 3 in the open tuition notes, the only way we could find the NCI is if we used the proportionate method. However, in this example 5, they require the Fair Value of the net assets
on the lecture notes it says debit RE not OCE? which one is the best option to debit?
OCE include share premium, revaluation reserve, gains/losses on fair value through other comprehensive income investments.
Part 1 of the question involved a gain on disposal when cAlculate the goodwill, since part two is related to part 1, this might be the reason for debiting OCE instead of Retained earning?
As always, very useful and interesting lecture, thank’s tutor.
I have the same question as aditya7. Please explain why there is a reduction in OCE.
Hello,
I also wanted to ask the same question as above.
Thanks
Yash
Hi Chris,
thanks for the video lectures !
I was wondering what exactly is the component in OCE thats reducing due to the transfer ? If its not the goodwill impairments and there are no revaluation gains or loss calculated then what is reducing within the OCE, what does that balancing figure of 1.1m represent ?
Thanks.