[cara12]

I get it, thank you

[cara12]

Thank you, i just wanted to make sure

[cara12]

Yes that’s much better, but what about the gain on investment in equity instrument, why is not added consolidated retained earnings calculation ?

[cara12]

The question is on page43 :

[cara12]

I’m sorry i still don’t get it

[cara12]

I used the question from the BPP exam kit, which is similar to the one in this exam kit pg43 :

[cara12]

Cash consideration for Savannah = $3,750 and for Axle =$9,000. It still doesn’t add up to the $13,250. There is a professional cost of $500 relating to the acquisition of Savannah, is this what makes it to the $13,250 figure?

[cara12]

🙂 Thank you very much Mike, this is much better!

[cara12]

I am very confused, i thought that the big entity acquires the shares from the subsidiary who owns all the shares of the entity and therefore the subsidiary would subsequently give them control once they pay the money

[cara12]

We buy the shares from the subsidiary, therefore the cash goes to them and their cash a/c is debited..

So is it because the cash a/c of the parent is credited, therefore there is a nil effect on consolidation?

[cara12]

Oh ok, thank you 🙂

[cara12]

But let’s say that at the date of acquisition, the Land of the subsidiary is revalued upwards by $1.2m and the PPE of the subsidiary is revalued downwards by $0.8m.
So in the goodwill calculation, both the revaluation gain on the land and the loss on the value of PPE are deducted from the goodwill calculation, why is that?

[cara12]

I did try the recordings first but i’m still stuck. I found one here page 11 : https://freeacca.blog.com/files/2010/06/BPP-F7-INT-Revision-Kit.pdf

[cara12]

Thank you 🙂

[cara12]

Thank you 🙂

[cara12]

Thank you, i understand it now 🙂

[cara12]

What are the entries that are made in Sanford in case Premier makes an issue of a $100 6% loan note for every 500 shares acquired in Sanford please?

[cara12]

Dear Mike,

When it says that the loss at 1 October 2012 is at -$2m, doesn’t it mean that it was at -$4m at 1 April 2012 and that it increased to the amount of -$2m at October 2012 and that therfore during these 6 months, it made a profit of $2m?

Thank you

[cara12]

I’m very confused, could you tell me what are the entries that are made when Premier makes an issue of a $100 6% loan note for every 500 shares acquired in Sanford please?

[cara12]

Yes I got the answer, thank you. I had omitted share of property revaluation gain

[cara12]

NCI is valued at fair value but impairment is not deducted from it, why?

[cara12]

Ok thank you very much

[cara12]

Ok thank you.

Is it possible for the County courts to hear multi track cases as well?
And is it possible for High Courts to hear fast track cases too?

[cara12]

Yes, i’ve seen it thank you.

[cara12]

Thank you!

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