Forum Replies Created
-
Posts
-
Group = P plus S
Group CF shows money coming in and out to / from P plus S
CF between P and S don’t count
With NCI the relevant cash is money paid OUTSIDE THE GROUP to NCI by S – this is the NCI share of S’s dividend paid
It’s a cash outflow
🙂
Either text would be OK. No big syllabus change this year.
But, you should buy a new exam kit from BPP or Kaplan., valid for September 2027 exam.
I have never seen NCI as a balancing figure, but if your working is clear and you get to the same answer, that’s OK. Remember that most of the marks are for explanations.
But if you are getting a different answer, then stick to our method. This is is what we would also use in FR.
PAT OF SUB x NUMBER OF MONTHS / 12 x NCI percentage
🙂
I’m not sure which website you are on – if it is the ACCA, then please contact them; if it is our website please copy and paste the URL.
Thank you
Please watch some of the debriefs in our REVISION KIT LIVE, where I show you what to write. Link below. 🙂
https://opentuition.com/acca/sbr/acca-strategic-business-reporting-sbr-revision-kit-live/
As you will see, the answers are much shorter than the exam kit.
I don’t produce model answers (you’ll have one in your exam kit). Please tell me speciifcally what techical question you have. Please don’t copy out the whole exam question, but try and reduce your issue to about 20 of your own words. 🙂
I believe that in this question NCI is measured at FV not the proportionate method.
As a general point, the exam tries to simulate real life – so we will be given all sorts of information in different ways….in the same way as clients do.
🙂
Use FV of sub shares to measure:
1. FV of original consideration for 40%
2. FV of NCIPlease watch my lectures on step acquisitions again for clarification:
https://opentuition.com/acca/sbr/changes-in-group-structure-step-acquisitions-acca-sbr-lectures/
Syllabus – no significant changes – use our existing course notes and lectures
BUT
Buy a new BPP exam kit – so that you can work with up to date questions.
CFS is a LIST of cash flows. The line ‘net assets’ does not exist in CFS. All that we have is MONEY OUT when we pay the vendor of the subsidiary and MONEY IN if the subsidiary brings a cash balance in.
Please watch our CFS lectures where this is fully explained:
https://opentuition.com/acca/sbr/group-scf-acquisition-disposal-of-subsidiary-acca-sbr-lectures/
🙂
I don’t keep Kaplan materials. Please summarise the problem so that I and other students understand the problem. Also, use the topic (eg control) not the question name as the header.
BTW – it is CONTROL not ownership of shares that determine subsidiary or associate status. If you only have significant influence, it’s an associate.
Dr = assets held by pension plan – because companay has made contrbutions
Cr = liabilities to beneficiariesPlease watch my lecture again as this explains the issue more fully
Settlement of 60 = amount paid to beneficiaries in return for surrender of benefits – this will DECREASE the pension ASSETS
Value of contribution of 50= I’m not sure of your context, but I supect this implies reduction in amount I must pay to beneficiaries – this will decrease pension LIABILITIES
As you say, reduction in assets is greater than reduction in liabilities. Therefore a loss of 10.Hope this helps.
🙂
If you mean SBR:
1. Use our free study materials OR buy an updated BPP workbook – either option is fine.
2. Get a new BPP revision kit. DO NOT USE AN OUT OF DATE KIT.If you are taking the exam in September, make sure you get the 26/27 BPP exam kit – the current one expires after the June sitting.
🙂
If you borrow to build an asset and don’t use the loan, does the lender not object? 🙂
But I would say P&L.
ALL ANSWERS FOR EXAM PURPOSES ONLY
1. We only answer questions for exam purposes. You need to take professional advice if you are asking about a situation at work.
2. For exam purposes =if material error – therefore prior period adjustment,
2. IAS 8 no longer examinable – it’s much safer not to use standard numbers in the exam.OK. Two weeks on FR, six weeks prep for SBR plus 2 weeks revision.
But start today!
🙂
In the BPP answer the 2 goodwill figures are 400 and 240 and the impairments are 40 and 24 (both 10% as stated in the question). In part 1 the loss must be shared with the NCI because we are valuing NCI at fair value. In part 2, no goodwill is attributable to the NCI , so no loss will be chaged. (If in doubt, look back at our groups lectures).