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November 26, 2021 at 4:05 am
Good morning Sir,
In example 2, what should we calculate if A only purchase additional 15% of B with amount of for example 60?
November 23, 2021 at 10:03 am
For the (W) Goodwill explanation, shouldn’t it be “NCI at date of additional investment” instead?
August 5, 2021 at 1:25 pm
In Ex1 – in reality would the investment not have been revalued annually in the years preceding gaining control? So some of the 12m profit would have been realised in prior years and the book value therefore may not be the 40m initial investment?
August 23, 2021 at 7:58 am
Then I suspect that the value of the original investment would be in the books at $52m and therefore nothing would need to be processed through profit or loss!!! Just an idea!!!
August 23, 2021 at 8:11 am
Also take note of the comments in the video (Changes in group structure – step acquisition) between 16:13-16:30 ref. the difference between carrying amount and fair value. That’s why it may be better to view this as “revaluation” rather than “disposal” – see video between 09:11-09:21 where he makes reference about some people prefer to view it as a revaluation rather than a disposal!!!
July 13, 2021 at 5:09 pm
10:33 – 10:40 on video
Should the arrow start at the FV and not the CA!?
July 25, 2021 at 4:53 am
Just came to ask this same question. But yes I think so.
August 23, 2021 at 7:17 am
December 9, 2020 at 6:57 am
HI, thank you for the videos. I have a simple question, but always gets me confused, especially if it comes to the exam.
What should we consider if the % of shares that we have is exactly 50% ; Is it treating as an associate because we dont have majority, or still it goes as subsidiary as we have equal control (unless this is treated as significant influence).
And same thing when we have 20% exactly. Associate or simply investment.
July 11, 2021 at 7:21 am
Don’t know how relevant this response will be since I am 6 months late, but if we have EXACTLY 50%, we consider it to be a subsidiary, and if it is 20%- 49%, we consider it to be an associate.
August 23, 2021 at 7:42 am
Also I suggest a re-read chapter 3 of opentuition notes – especially section 1 and section 2, And listen to the accompanying video. Basically it is all about “power to direct” or “significant influence” – and that does not necessarily mean attaining 50% or > 50% as in the case of a subsidiary OR attaining between 20-49% as in the case of an associate. Example 1 (pp 12 of opentuition notes) is very simple but clearly demonstrates the issue of “significant influence”.
August 23, 2021 at 7:50 am
Also take note of the comments in the video (Changes in group structure – step acquisition) between 12:40-13:13 ref. associate vs normal investment!!
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