[gillers]

Way too time pressured, should be another 15 minutes added onto the exam.

Failed to attempt the 4th question, partially my own fault, partially the lack of time in the exam.

[gillers]

@mozi4u said:
Passed with 56 …first attempt?

Yep first time.

[gillers]

56%, absolutely delighted.

Ran out of time in the exam and only answered 82% of total marks. So really thought I may fall short by a couple of marks.

All the best to everyone else waiting on their result 🙂

[gillers]

Any tips from those who passed, on best way they found to study for the exam?

Will be attempting it for the 3rd time in March 🙁

[gillers]

Failed again, was second time doing it and put a good bit of work in. Even answered Q4 well in it.

Absolutely gutted. Serious confidence denter.

Go again I guess.

[gillers]

Part B of Question 1 then asks

“Explain with suitable calculation, how the sale of the 8% interest in Nathan should be dealt with in the group SOFP at 30/April/x4?

This is then calculated as Id expected:

Net Assets plus any FV Adjustment plus any Goodwill multiplied by amount disposed of (8%) and subtract from sale proceeds ($18m) in this question for example.

So I guess what I am saying is why was it not calculated like this in the SPLOCI?

__________________________________________________________________

Because in the Q Grange (December 2009) a SOFP

Fence owns 100% of Fence and disposed of 25% of its equity interest to the non controlling interest for a consideration of $80m. The disposal proceeds had been credited to ther cost of investment in the SOFP.

The solution to this disposal was:
Net Assets, FV Adjustment & Goodwill all added together and multiplied by 25% and subtracted from the sale proceeds.

With the accounting entries being:
DR Cost of Investment
Credit NCI
Credit Parents Equit

[gillers]

Hi Mike,

Thanks for your reply, unfortunately it is still not clear to me.

The solution in the book says

“The sale of the 8% equity in Nathan does not result in loss of control, and is shown as a movement in equity in the consolidated financial statements, with no profit or loss arising.
Accordingly the gain on the sale recognised in the parents separate financial statements must be reversed”

Debit Other Income (18-(95 x 8%/60%)) = 5.33
Debit Investment in Nathan (95 x 8%/60%) = 12.67
Credit Other Components of Equity = 18.00

[gillers]

Thanks Mike, apologies for my delay in responding 🙁

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