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SBR

Goodwill, NCI and group retained earnings - ACCA (SBR) lectures

VIVA Subject Guide
YouTube video

16 Comments

  1. Belinda
    Hi there, I have rewatched the video a couple of time. I'm puzzled why the whole of the loss of $11 is in the group retained earnings?
    I need a further breakdown can anyone help
  2. Jocelyn
    Thank you for the great lecture!
    Just wondering as in group consolidated SFP, we have total assets=490(parent)+206.98(subsidiary)+GW 83.72=780.70, total liabilities=130(parent)+60.47(subsidiary)=190.47 and that left the equity as in balancing amount of 590.23m USD. However, if we add up Retained Earnings of 111 and share capital=250(parent)+92.11(subsidiary)=342.11, that doesn't give us the balancing figure (aka. the group SFP doesn't balance) Would you please kindly advise which part if missing? Many thanks!!
  3. fatemakhalid
    what do we do with the difference between translated p&l and post acquisition profit 30m vs 15m?
  4. wgk
    What 30m are you referring to?
  5. bodeveu
    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 $. I don't get it why we translate the same 130 mD (in Example 4 when calculating gain or loss on translation of overseas subsidairy) using different rates - suddenly our 130 mD are worth 30.2 m$.
  6. wgk
    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).
  7. penelope
    Sorry quick question, why is there no exchange differences on the nci. I don’t understand this point. Thank you
  8. Ismail
    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
  9. YASH
    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
  10. Lucie13Supporter
    For people who might have the same question as above, listen to Chris’ lecture again from 6:22
  11. arslanhussain
    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 20x8 it should be 3 years from acq date i.e 1 Jan 20x6 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?
  12. ahmedsultan
    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?
  13. Lucie13Supporter
    You only grossed up GW when you are calculating impairment
  14. lynn5688
    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
  15. aruna
    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.
  16. P2-D2Tutor
    Hi,

    Thanks for highlighting this, I'll update the answer so that it matches the video.

    Thanks

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