Other components of equity - Example 3 - ACCA Strategic Business Reporting (SBR) lectures
YouTube video
7 Comments
Z
zameena·
Hi Sir, regarding net assets of the subsidiary can you please reiterate on how you got the $400M and $ 225M under post acquisition. Thank you
R
rexsaldanha·
Thank you soooooo much for increasing the size of the video playback window!!!!
Z
Zura·
Thank you, very appreciate.
M
misbahkiran·
in case of impairment of goodwill in proportionate method we will account for only 80%.. am i right?
one thing i don't get is in both methods we are adding NCI to Fv of consideration. so why is it different goodwill in both i mean in proportionate we are saying it's only parent and in FV we are saying its for both.
from the lecture i just got the point that if NCI is at FV then it will be full good will..
i am not still getting logic that why one is proportionate and other is full even if we add NCI to consideration in both method.
B
Bhumit Soni·
Hello Sir, in Example 3, for working of group retained earnings why have we worked out (80% x 400) only considering post acq. Of R.E. whereas in the Example 2 for the same R.E working we have considered full post acq. Profit.
P
P2-D2Tutor·
Hi,
We are now bringing in the other components of equity in to the questions now, so any movement in the net assets of the subsidiary will constitute not just a movement in the retained earning as we've seen in previous examples but also a movement in the other components of equity.
When looking at the parent's post-acquisition share we need to take the post acquisition share of profits/retained earnings to the group retained earnings working and the post acquisition share of other components of equity to the group other components of equity working.
Thanks
L
lakshmi·
Hi Sir, in this we have calculated other components of equity and u mention there is a video on it. however i cant seem to find the video on other components of equity
one thing i don't get is in both methods we are adding NCI to Fv of consideration. so why is it different goodwill in both i mean in proportionate we are saying it's only parent and in FV we are saying its for both.
from the lecture i just got the point that if NCI is at FV then it will be full good will..
i am not still getting logic that why one is proportionate and other is full even if we add NCI to consideration in both method.
We are now bringing in the other components of equity in to the questions now, so any movement in the net assets of the subsidiary will constitute not just a movement in the retained earning as we've seen in previous examples but also a movement in the other components of equity.
When looking at the parent's post-acquisition share we need to take the post acquisition share of profits/retained earnings to the group retained earnings working and the post acquisition share of other components of equity to the group other components of equity working.
Thanks