[unaiza]

Thank you sir

[unaiza]

Alright
Thank you

[unaiza]

yes thanks a lot

[unaiza]

I wrote whole question and wrote that part of solution which I didn’t understand as the solution was too long. I didn’t know that my short cut would become a trouble for you
Iam sorry for that

[unaiza]

Ohhhk
Thanks alot sir

[unaiza]

Cash flow
Example 5 DOVILE

T-ACCOUNT

DIVIDEND PAYABLE _____________________
Cash $1431 / b/f $831
/ I/S $600
C/F $915 / I/s $915

Sir, $915000 is a carried forward figure why it is added to income statement for the year 2009 as well

[unaiza]

Thanks sir

[unaiza]

Thanks sir

[unaiza]

Ohhhk
Thanks

[unaiza]

Ohk thanks alot sir

[unaiza]

The reconciliation of current accounts

[unaiza]

Ok thanks

[unaiza]

Sir I am getting confused
as the question says that Sandford has not incorporated this in his financial statements then how come he would had overcharged it.

[unaiza]

Ohk
But why they have added depreciation amount to cost of sales i mean depreciation expense comes under expenses after gross profit

[unaiza]

Ok thanks

[unaiza]

Ohk thank you sir

[unaiza]

Ohhhhhh yeah you are right how can a parent company could rationalise a group when it havnt formed a group yet
now I got the point
Yeah you were right, wasn’t thinking
Btw
thanks sir 🙂

[unaiza]

Opps yeah, fv if s NA @ DOA will be subtracted
Ohhhk,
then what changes will it bring to the consolidated statement of financial position, if rationalisation of group takes place at the date of acquisition or before.

[unaiza]

Solution

W2 goodwill
Cost of investment $12M
Value of NCI $4.0M

Plus
Fair value of s NA @DOA
Share capital $8.0
Pre acquisition reserves $4.4
Fair value adjustments
PPE ($16.6M – $16.0M) $0.6
Inventory ($4.2M- $4.0M) $0.2
($13.2)
————
$2.8
My question what if rationalisation of group would have took place at the date of acquisition or before then what adjustment would have been made to the calculation of goodwill please can you show me working in order to clear my doubts.

[unaiza]

On 1 Sept 20×7 tyzo co acquired 6 million $1 shares in kono co at $2.00 per share. At that date kono co produced the following interim financial statements.
PPE (note1) $16.0M
Inventories (note 2) $4.0M
Receivables $2.9 M
Cash in hand $1.2M
Trade payables $ 3.2M
Taxation $0.6M
Bank overdraft $ 3.9M
Long term loans $ 4.0 M
Share capital ($1 share) $8.0M
Retained earnings $4.4M

Note 1: (PPE)
Gross replacement cost: 28.4M
Net replacement cost(cost less dep) 16.6M
Economic value 18.0M
Net realisable value 8.0M

Note 2:
The inventories of kono co which were shown in the interim financial statements are raw materials at cost to kono Co of $4M. They would have cost $4.2M to replace at 1 September 20×7.

Note3: on 1 Sept 20×7 tyzo co took a decision to rationalise the group so as to integrate konso CO. The costs of the rationalisation were estimated to total $3.0M and the process was due to start on 1 March 20×8. No provision for these costs has been made in the financial statements given above.

Note 4: it is group policy to recognise NCI at full fair value

Calculate goodwill

[unaiza]

Ok thanks

[unaiza]

Sir in your video related to IAS 40 Investment
There is no calculation mentioned but in bpp’s kit I found more than 2 questions related to transfer of investment property a calculation based question
What to do as I have started to read your notes only

[unaiza]

Thanks

[unaiza]

Ok

[unaiza]

Ok got you but what about Q2

[Author]

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