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Group profit/loss on disposal
$mProceeds X
Add: investment still held X
Add: non-controlling interest X- QUESTION-, is it nci @ disposal date which is 31st march 2016 in question or is it the reporting date which is 30 june 2016 ?????Less: net assets at disposal (X)
Less: goodwill (X)Group profit or loss on disposal X
in the model answer nci @ disposal in the share of pst acquistion is 40% of 154-114 ….. can i know why is it 114 and not 118 ?
net assets at disposal was 118 + (48x 9/12) 36 which is 154, so the post acquistion earning is 36
coz post acquistion earning at disposal date is 36 , so why not 40% x 36 in the share of post acquistion gains IN NCI @DISPOSAL IN MODEL ANSWER ? THEY HAVE USED 40% x (154-114) ??
i know ginny becomes an associate and the share is 3.2 +1.6 which is to be accounted for , but i dont think this has got to do anything with nci @ disposal calculation as it an associate , so where did the extra 4 come from ?
i have just realized 114 is the fv of net assets when acquired at 1 july 2014 , so is this the number used (154 -114 ) in calculating the share of post acquistion gains ?
but the fv of na was given as as 118 in at 1st of july ,which is the beginning of the year
so why do we not use 118 in calculating the share of post acquistion gains ….? as sfp are on yearly basis and so wouldnt 118 be the relevant figure instead of 114 in calculating share of post acquistion gains for the YEAR ?
🙁your revision lectures helped a lot , and the way you do ,is more simple to understand than model answers ,but you have only solved 4 questions in your revision lectures
is there any paid site than you would recommend in which they solve more past exam questions in a similar style to you ? or any good one than you know of ? coz model answers confuse me sometimes…and doing past exam questions with a teacher helps a lot , otherwise i am stuck at a part for hours
Hi,
Wow! I’ll try and answer everything you mention but it’ll be a challenge given the amount of information above.
The post acquisition profits take the net assets at acquisition of $114m comapred to the net assets at the date of disposal. The $118m you mention is the net assets at 1 July 2015, which is neither the acquisition date (1 July 2014) or the disposal date (31 March 2016).
To get the net assets at the disposal date (31 March 2016) we need to add the profits from the start of the year (1 July 2015) to the disposal date (31 March 2016), so the 9 months.
I think you really need to draw up a timeline of when things are happening in this question to help you understand which figures are necessary for each calculation.
I can’t see the 4 that you refer to with regards to the associate calculation, sorry.
There are plenty of paid tuition providers out there, but you should also trawl the web as there are some free debriefs of questions out there.
Thanks
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