Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Calculations upon disposal of a subsidiary
- This topic has 1 reply, 2 voices, and was last updated 3 years ago by Kim Smith.
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- October 27, 2020 at 5:41 am #593216
Dear Sir/Madam,
I cannot understand the workings laid out in the solution to the following activity. How did they arrive to the $660 part of the workings for net assets and $200 for NCI?
Pelmer Co acquired 80% of Symta Co’s 100,000 $1 shares on 1 Jan 20X2 for $600,000 when the reserves of Symta were $410,000. Symta had a brand name valued at $50,000 which was recognised on acquisition. The FV of the NCI at acquisition was $150,000. On 01 Jun 20X6 Pelmer disposed of its shareholding for $1,500,000. At that date, Symta’s reserves were $710,000 and it had net assets with a carrying amount of $650,000. The value of the brand name has not changed since acquisition.
Solution:
Consideration transferred 1,500,000
Less
share of consolidated
amount at date control lost:
Net assets (100+660+50) 810
Goodwill 190
NIC at date control lost 200Gain 700
November 28, 2020 at 5:16 pm #596925If you mean to address a tutor with “sir/madam” you need to use the ask the FR tutor forum https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-financial-reporting-fr-exams
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