[ancila]

Thank u so much opentution I passed with 66% on my first attempt

[ancila]

I took CBE exam section a was disaster section b and C was OK but in section C consolidation sum I got difference of 20440 and I got goodwill negative. If anyone wrote CBE and had got consolidation sum can u just let me know that did they give share exchange value under cost consideration of goodwill out of cash , share and deferred consideration I felt only deferred was given wat about u guys ???

[ancila]

Thank u so much sir now I understood and sorry for troubling you asking same again

[ancila]

No because I still think it has to be 20000 (10000*2) because it was acquired 2 years ago

[ancila]

$60000 ( 80000-20000)

[ancila]

BPP 123 Plastik sum
Normally we deduct impairment from goodwill then retained earning and NCI will be charged according to their shares
But in these two question they have not deducted impairment from goodwill

[ancila]

Bpp question 123 adjustment (iv)
Due to recent adverse publicity concerning one of major product lines goodwill arose on the acquisition of subsidiary has been impaired by $500000 as at 30sept 2014 . Goodwill impairment should be treated as an administrative expense

Here also same they have not charged impairment under goodwill I don’t kno why

[ancila]

Sir in the answer calculation is like this
Liability at 1 April 2017. 240000
Interest (240000*12%*6/12) 14400
Balance on 30 sept 2017. 254400
Interest (240000*12%*6/12). 14400
Payment. -100000
Capital balance sept 2018. 168800

I do not understand why they added twice interest and they deducted 100000 after adding interest in question it is advance and about 12% I don’t kno how they got

[ancila]

Yes interest rate is 12% but I don’t understand from where did they get this 12%

[ancila]

ohh yes its clear thank you so much sir now i understood the logic behind deferred income hope this will help for exam

[ancila]

Oh sorry reporting date was September and new plant was brought in April so now I understood thanks ma’am

[ancila]

There is existing plant and new plant i did not understood the calculation of only new plant
Here’s the information about existing plant
Valuation was 150m
Depreciation (105)m
So the carrying amt is 45m
And existing plant in depreciated @20% on cost

[ancila]

Am so sorry I did not c but why did they ignore this calculation carrying amount of $1.4m and and sold for $1.6m =$ 0.2m vl b profit this amount they have not considered any where

[ancila]

Yes June 2015* sorry
How did they get $0.5m ???

[ancila]

I meant sometimes v have to deduct purp under net asset at acquisition and sometimes not***
Now I understood thank u sir

[ancila]

Understood thank u so much sir

[Author]

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