Translation of the subsidiary - ACCA (SBR) lectures
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9 Comments
A
Ashley·
Hi Sir,
Thank you for the wonderful video. After your tutor, I have tried to consolidate the SFP, however the liability and asset was not balance. Can you help me with them? Below are my work:
Consolidated BS
Non-current asset $316,279,070
Goodwill $83,720,930
Current asset $180,697,674
Total asset $580,697,674
Current liability $95,348,837
Non-current liability $95,116,279
Share capital $250,000,000
Retained earning $110,930,233
Parent retained earning $110,000,000
Ex change loss on goodwill ($11,015,912)
Post acquisition RE $11,946,145
Total asset & liability $551,395,349
There was 29m unbalance, I don’t know where is the mistake.
N
nonso13·
Hi Thank you for the lecture.
My question is centered on when there is a additions on the acquisition date not stated in the financial statement of the subsidiary but in the additional information or fair value adjustments, will using the balancing figure for post-acquisition profit be ideal?
for example, if in the statement of financial position, the fair value of the net asset is 620 and then we are told in the additional info that the fair value net asset is 990. the difference is as a result of an increase in land. All on the date of acquisition? How can this be treated to arrive at Post-acq. profit?
K
Kyle·
Does anyone know why R2-P2 did the initial SPL working? Doesn't seem to be needed/used for any of the calculations.
TIA!
G
Gibin·
Hello Sir,
You are doing a really fine job but still i would like to clarify one doubt.
In SPL that we have translated there is a profit of $32.5m shouldn't that amount be split into NCI and Group reserve. In SFP there is a 15m shouln't the SPL and SPL tally with each other. If no why does this difference come.
Hope you would provide further assistance.
Thank you,
Sincerely,
Gibin.
L
Lucie13Supporter·
The reason for working out the post-acquisition number as a balancing figure is because included in the post acq profit, there are also revaluation gains and losses over the periods. That is why the PFY does not equate the translated post acq number.
B
babou1965·
By using the equity table the equity table to illustrate different method ,& is allowed in the SBR exams to work in totals ( the examiner advised ) , is about application of the principles
I dint understand why we are taking post acquisition reserve as balancing figure ? could you please clarify on this?
Thanks in advance
P
P2-D2Tutor·
Hi,
You could try and calculate it but it would be very challenging to do so as it will include all the various translation gains/losses since the date of acquisition. It is therefore much easier to keep it as a balancing figure.
Thank you for the wonderful video. After your tutor, I have tried to consolidate the SFP, however the liability and asset was not balance. Can you help me with them? Below are my work:
Consolidated BS
Non-current asset $316,279,070
Goodwill $83,720,930
Current asset $180,697,674
Total asset $580,697,674
Current liability $95,348,837
Non-current liability $95,116,279
Share capital $250,000,000
Retained earning $110,930,233
Parent retained earning $110,000,000
Ex change loss on goodwill ($11,015,912)
Post acquisition RE $11,946,145
Total asset & liability $551,395,349
There was 29m unbalance, I don’t know where is the mistake.
My question is centered on when there is a additions on the acquisition date not stated in the financial statement of the subsidiary but in the additional information or fair value adjustments, will using the balancing figure for post-acquisition profit be ideal?
for example, if in the statement of financial position, the fair value of the net asset is 620 and then we are told in the additional info that the fair value net asset is 990. the difference is as a result of an increase in land. All on the date of acquisition? How can this be treated to arrive at Post-acq. profit?
TIA!
You are doing a really fine job but still i would like to clarify one doubt.
In SPL that we have translated there is a profit of $32.5m shouldn't that amount be split into NCI and Group reserve. In SFP there is a 15m shouln't the SPL and SPL tally with each other. If no why does this difference come.
Hope you would provide further assistance.
Thank you,
Sincerely,
Gibin.
y/e @ Acq Post - acq
sc (350/4.3)= 81 (350/3.8)= 92 (81 - 92)= (11)
Re ( 280/4.3)= 65 (150/3.8)= 39 (65 -39) = 26
post acquisition gain of $15 m- slips 80, % 20%
i hope it helps ,
I dint understand why we are taking post acquisition reserve as balancing figure ? could you please clarify on this?
Thanks in advance
You could try and calculate it but it would be very challenging to do so as it will include all the various translation gains/losses since the date of acquisition. It is therefore much easier to keep it as a balancing figure.
Thanks