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Thank you sir for this knowledge I did not know that ACCA changed F5 to name MA.
Thank you sir for your guidance as well…one last question that I want to ask again is if 2 months are enough for preparation of MA (F5) ?and also how you have helped me with queries that i came across. thank you for that and to open tution too 🙂
Sir I have passed F3 with 70 percent marks. All credits to your lecture THANK YOU
Also Sir I want to ask you ”NCI will always feature within the consolidated financial statements” why is this statement not correct…. as far as i know when we make consolidated SOFP …the value of NCI calculated is mention on the face of statement in Equity section…
Sorry and Thank you In advance for asking too many questions and for your invaluable help as a tutor.
On 1 July 20X4 Lion paid $20 million to acquire seventy per cent of the issued equity capital of Tiger. For the year ended 31 December 20X4, Tiger had earned profit after tax of $2 million. Tiger had retained earnings of $10 million at 1 January 20X4. At the date of acquisition, Tiger had issued equity capital of $8 million and the fair value of the non-controlling interest at that date was $6 million.
Based upon the available information, what was goodwill on acquisition of Tiger for inclusion in the Lion consolidated financial statements for the year ended 31 December 20X4?SOLUTION:
$7,000
Consideration paid 20M
FV of NCI at acquisition 6M
FV of net assets acquired:
Equity share capital 8M
Retained earnings to I Jan X4 10M
Retained earnings to acquisition (6/12 × 2,000,000) 1M
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(19,000)
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Goodwill on acquisition 7,000Sir I Understood all the question except for one part… we calculate goodwill by …Consideration paid + f.V of NCI – Net assests of S at Aquisition date (i.e share capital + R.E At date of acquisition)
BUT however in this question retained earning at acquisition and reporting date is deducted when only at acquisition date should have been deducted.. why so?? kindly sir
Also Sir I want to ask
If P sells goods to S we will deduct PURP from Group retained earning and Inventory on consolidated SOFP…right sir?
and if S sells goods to P… we will deduct PURP from NCI and also from inventory in consolidated SOFP…as per your lectures
but sir in the text book that i am using , when S sells goods to ‘P’ PURP is deducted from Net Assets of Subsidiary at reporting date and inventory…Kindly Sir explain this i am having problem in from where to deduct PURP in both cases