[tauqeer1996]

Sir this question is taken from Kaplan kit newest edition

[tauqeer1996]

I will try this technique from now on. thank you

[tauqeer1996]

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) ?

[tauqeer1996]

Your guidance will be much appreciated ,
Thanks in Advance

[tauqeer1996]

and also how you have helped me with queries that i came across. thank you for that and to open tution too 🙂

[tauqeer1996]

Sir I have passed F3 with 70 percent marks. All credits to your lecture THANK YOU

[tauqeer1996]

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…

[tauqeer1996]

Sir kindly Explain why did we subtract bank overdraft to calculate b/f?

[tauqeer1996]

Thank you Sir Moffat. Infinite respect for you 🙂

[tauqeer1996]

ohh…thank you so much dint know about it

[tauqeer1996]

Sorry and Thank you In advance for asking too many questions and for your invaluable help as a tutor.

[tauqeer1996]

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
––––––
(19,000)
–––––––
Goodwill on acquisition 7,000

Sir 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

[tauqeer1996]

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

[tauqeer1996]

This question was in one of the Acca approved exam kit and I dint understand the question thank you for your help. Sir kindly can you explain to me what ‘fair value of an equity share in entity C was $3.50 ‘ means?

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