CIMA F2 IAS 21 – Group Accounts – Overseas consolidation

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1. chrisj1 says

   April 24, 2023 at 4:39 pm

   Updated lecures: https://opentuition.com/acca/sbr/overseas-consolidation-introduction-acca-sbr-lectures/

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2. bex481 says

   June 1, 2018 at 9:18 am

   Can I check with ivy’s non current assets calc why are you adding the 100 diff on in the ppe and net asset working? The valuation was higher at acqn so shouldn’t this be taken off for n.a. working and not included in ppe calc?

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   • P2-D2 says

     January 1, 2019 at 6:53 pm

     Hi,

     We are given the fair value of the net assets at acquisition as 600, but the book value is only 500 (350 equity shares and 150 retained earnings at acquisition), so the net assets at fair value are 100 higher than the book value. We therefore need to add the 100 to the PPE as we are told that any FV adjustment is due to non-depreciable land, which is an item of PPE.

     We would only deduct the values if the fair value was below the book value, but we rarely see this.

     Thanks

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3. chough88 says

   January 27, 2018 at 11:29 am

   Hi Chris
   Just a question, when you add post acquisition retained earnings of the subsidiary in your NCI calculation and in the Group retained earnings calculation, should these earnings not be added at the average rate (instead of the closing rate), since these earnings come from the income statement?

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   • P2-D2 says

     January 1, 2019 at 6:48 pm

     Hi,

     In the income statement they are translated at the average rate, but in the SFP everything is translated at the closing rate so even the post-acquisition profits. Any exchange differences are then dealt with separately but we don’t need to get too concerned with those.

     Thanks

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