Goodwill, NCI and group retained earnings – ACCA (SBR) lectures
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what do we do with the difference between translated p&l and post acquisition profit 30m vs 15m?
What 30m are you referring to?
Hi, in previous video, when we calculated post acquisition reserves (retained earnings) we translated 130 mD of post acquisition profits using balancing method into 15 m $. I don’t get it why we translate the same 130 mD (in Example 4 when calculating gain or loss on translation of overseas subsidairy) using different rates – suddenly our 130 mD are worth 30.2 m$.
HR (3.8) was used in the translation of the Share Capital and Pre Acq Res. If CR (4.3) was used then the post acq would be 30 mD (the balance).
Sorry quick question, why is there no exchange differences on the nci. I don’t understand this point. Thank you
SINCE The Good will is partial (i.e: NCI valued in proportionalte method) partial goodwill there is no portion of goodwill which belongs to NCI . So the exchange difference is fully allocated only to parent . If it is a full goodwill the exchange Gain or loss will be allocated to both Parent and NCI
Hello,
Thanks for the great lectures.
I have a question regarding goodwill that why did you retranslate the goodwill again with the historic rate?
Thanks
Yash
For people who might have the same question as above, listen to Chris’ lecture again from 6:22
My Query is related to Eg. No. 5 of Chapter 7 from Opentuition Notes
In that 4M Dinar is in excess of its CV so adjusted in Net Assets @ acq date and its life is 10 years but till y/e 31 Dec 20×8 it should be 3 years from acq date i.e 1 Jan 20×6 but only 0.8M Dinar is deducted as depreciation which makes 2 Years Dep. in Post acquisition reserves workings is there any confusion on my side or its written incorrect in Notes Answers?
Hello,
I am a bit confused, given the fact that we calculated the NCI on proportionate share basis. In order to calculate the goodwill we should’ve grossed-up the goodwill while the solution doesn’t do so?
You only grossed up GW when you are calculating impairment
Hi Sir,
If the NCI was measured at full goodwill method. Do we need to adjust all following components when we calculate the NCI on SOFP?
NCI share of exchange differences on net assets
NCI share of exchange differences on goodwill
Is there a typo in the answers of the lecture notes? I see that you translated the 100 to 26.3 for NCI like I did but the answers at the back say 120. I will go with what you explained on video but thought I would mention.
Hi,
Thanks for highlighting this, I’ll update the answer so that it matches the video.
Thanks
Sorry Sir, at 2:54 (when you were calculating the GW) where did you get 500Ds from ? it looks like you have taken non-current assets, don’t you need to use net assets at 890 ?
Sorry, I have just realised NA = A-L -POST AQ profit