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@zeroun21 said:
I want to join..is it Late? Where can I download past sessions ?How frequently do you guys meet ?
It is not late. Pl see the first comment in this thread by Ansi. We have just completed the Part A of the syllabus. Tomorrow is our next session and we’ll be discussing Part B. Ansi is conducting these sessions.
@ansi, ejeee and admin- I too was having trouble signing in today. I was unable to access the website. I finally succeeded when I searched for opentuition.com on Google, where from I got on this site and then finally onto chat. 🙂
Oh and, Ansi, I’m in for P2 sessions. 🙂
Congratulations everyone!! 🙂
I passed F8 with 62%, F9 with 73% & P1 with 61%. 🙂
It’s there on page 5 of BPP text.
There have been so many corporate scandals in recent years that users have started to doubt on the objectivity and independence of auditors, which is why many changes have occurred in relation to audit and assurance engagements.
Damn! Just found about it… Will turn up for the next session…Thanks Ansi! Looking forward to studying with you..:)
@princess1decyos said:
i have the book and the revision kit i used them for June
is it ok i use it for exam in December???
its blue color written for exam in 2011
is there any changes in the sullybus?thank you in advance
You can use it for Dec 2011. 🙂
Can you type the exact figures regarding your doubt from the Parentis question ? I think there’s a misprint out there.
Negative goodwill means bargain purchase. This is how it is handled:
First calculate goodwill. You’ll get it as negative.
Next, add it to the Parent company’s Retained Earnings calculation. (after checking for any misstatement of the Fair values of Assets and Liabilities)Note: Unlike positive goodwill, we do not show negative goodwill as an Asset in the Consolidated Statement of Financial Position.
I would also like to know from the tutor about when to credit negative goodwill to the Consolidated Income Statement.
‘It’s like a profit made on acquisition’. That’s what I was looking for. Thank you! 🙂
@coolbam said:
Grossed notional goodwill is impaired.Is it correct to minus say 90% from goodwill cal and say 10% from NCI or directly from goodwill only whislt DR group retained earnings?
Please tell the exact question. Which book have you quoted it from, page number, etc.? Your question is not clear to me.
What do you mean by the first set of financial statements? And how do we treat it in the Consolidated Income Statement?
Whoops! I wrote it quite clearly but all the spaces got removed once it got posted. Hope its clear to you. Read it this way: Parent: 210+58-248=20. NCI: 65+0-62=3.
@gutsychyk said:
hi there
I am bit confused with goodwill. I know how to calculate when to calculate. The only thing i am struggling with is, sometimes when there are full SOFP questions I understand they calculate CI goodwill and NCI goodwill and then add them together for total goodwill.
I was doing one question from June 2008 called sardonic, we are asked to calculate goodwill. I checked the solution they have only calculated CI gw.
How do I know when to or when not to include nci, help please
Thanks
gutsychykI’m assuming that you studied from BPP text and solving a question from Kaplan kit. If this is the case, then I would like to tell you that the two texts have different methods of calculating the goodwill. In BPP, they find the g/w for Parent and NCI and add them together in CSOFP. In FTC, they find directly the total g/w. So the g/w value of 23 in the answer is actually the total g/w. If you want to calculate it separately for P and NCI and then add the two, here’s how you do it.
Parent NCI
Consideration tranferrred (Investment) 210 65
Loan note (116/200 * 100) 58 –
Less: Net assets of S at acq’n (248) (62)
(310*80% for P, 310*20% for NCI)
Goodwill 20 3Note that 20+3=23 (the answer in your kit). Hope this helps.
@shadedrose said:
I have been solving consolidated SFP and I understand that the cost of investment in Parent’s SFP is eliminated from consolidated SFP.
Where there is exchange of shares, and deferred consideration, we take it into account.hwoever, I found a question, where:
Investments in Subsidiary = 98,000(there are non-current liabilities: 8% loan notes in subsidiary’s SFP = $20,000)
The loan note in subsidiary’s books represent monies borrowed from Parent during the year. All for the loan interest has been accounted for.There is no exchange of shares or deferred consideration.
Now, in the solution, investment is included in CSFP : 2,000.
Apparently, what thy did is: (98,000 – 76,000 – 20,000)They also too 76,000 in goodwill calculation as parent holding. I did not understand from where did this 76,000 come from.
I guess 20,000 is the total amount of loan notes deducted from investment. The question is why.
Answer would be appreciated. 🙂
P.S If you think there might be some other relevant information in the question (which I doubt there is) would you please clarify exactly how to treat the investments in subsidiary in CSFP?
I had the same doubt until I read the first paragraph of the qn ( that is, before the Statement of Finan. Position). It’s mentioned there that Karl bought 60% of Susan paying $76000 cash… I was real bugged and highlighted that $76000 so that I don’t miss it later..lol!
@mikelittle said:
No, not reversed – but it would need to be cancelled on consolidation. Intra-group transactions have the effect of transferring money from one pocket to another pocket in the same pair of trousers. In addition to reducing consol revenue and consol cost of sales by the invoiced value of the transaction, you will need to ADD to cost of sales any profit element recognised by the selling company BThat’s a very nice explanation. Thank you! 🙂
Here’s the link to the question. It’s name is Highmoor. Try solving it.
https://opentuition.com/groups/f7-financial-reporting/documents/@rajshree said:
Hi as far as I know if goodwill is positive we capitalise as tangible and test for impairment but if negative we credit to income statementThat’s right. But in the answer, they are adding the amount to retained earnings. Im trying to relate this to the ‘cr. in Income statement’, and I think we gotta treat bargain purchase as ‘income’. So that goes on cr side of I/S and I guess that’s why we add it to retained earnings. Not sure about this.