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Much better, thanks Mike. There are so many rules I’m trying to wrap my head around.
Thanks Mike, I did have a quick look but couldn’t find similar question, I guess I didn’t look hard enough.
I see what you mean, I did misunderstand. I thought the £100000 was the FV and not their share of the goodwill. Thanks once again and LOL at the English cricket team joke.
Actually, there was only one subsidiary, it was the Sergijus and Indra question. Where S had 55% and 2 years later, acquired a further 25%. The NCI interest in goodwill on original acquisition had been valued at £100000.
In working out the goodwill, you calculated the NCI as:
(45% × 1,280,000) + 100000. The 1280000 was the NA @ DOA.I just wondered why you had to add both the FV of NCI and proportionate value, when the FV was given or did I misunderstand the question? Thanks.
Thanks, I completely overlooked that little detail. I’ve got another question about the change in the composition of a group. In the NCI calculation, why did we have to use the proportionate method when the FV, £100000 was given? I thought if the FV was given, that would be the figure to use.
Thanks for making it clear Mike. I’ve got another question, if you don’t mind? In eg 4 of chapter 3 of your course notes, I really don’t know how you got the 7/15 as the group’s share of the NA in the goodwill calculation. I understood the 70%, the 2/15 and I thought that K’s share in L was 10/15 and not 7/15. Thanks.
Thank you Mike for your quick response. I guess I’d have to listen to some of the lectures to have a better understanding of the solutions. Much appreciated.
Thank you Jenny, I’ve decided to take classes but really not sure whether to continue to use BPP or switch to Kaplan