cancelling NCI in investment in complex group structure

When we calculate the nci in a subsidiary, we look at value at date of acquisition + their share of post-acq retained earnings - their share of g/w impaired since acquisition Another way of saying the same is to say that they want their share of the subsidiary net assets as at consolidation date (plus their share of any goodwill that is still to be impaired) But the subsidiary net assets include the subsidiary's investment in the sub-subsidiary. So if we give the nci their TOTAL interest / share of the sub-subsidiary as well as their share of the subsidiary, then we shall be double counting the indirect nci share of the investment in the sub-sub And that's why we have to eliminate from the sub's assets when calculating the nci in the sub. It's so we can calculate the nci in the sub-sub using their total percentage interest Ok?

Thanks very much, I think I get it now. I'll probably have to allow a few minutes for it to completely sink in! There's probably some other niggling questions I have leading up to next week's exam, so you might hear back from me in a little bit! Hope that's ok.

Is there any way I could stop you? :-) And if you do post again "you might hear back from me in a little bit! Hope that’s ok." It's a two-way street! Of course it's ok!!!!

Thanks very much, I don't know what I'd do without you! (and I'm being serious!)

Huh! Is that a proposal????? :-))) get stuck in to your studies, get these exams out of the way and then ...... get a life, a good job, satisfaction. You've got the rest of your life to look forward to and it will be rather more comfortable as Neil Solaris ACCA than Neil Solaris "I once started doing that qualification too" Still waiting for any niggling questions you may come up with Cheers

Thanks very much, I can't wait for the day I complete the final exam! I'm not your typical student though, and I'm not young anymore. I'm a busy self-employed musician (violinist), and I thought I'd attempt the ACCA as a kind of challenge / back-up plan / hobby! I'm not sure what my goal is, but maybe I can combine music and accountancy one day! Anyhow, after today I've got 2 days free to do some studying, and I'm sure I'll have some niggling questions then! Thanks again.

Maybe we should book you to play the accompaniment for the TNCA song and the working W3 song! Brave move though to start into ACCA! Yet another string to your bow?

That's a good idea, let me know when you're free and I'll book a studio! Very good pun, I've used that one myself a few times!

I bet you have!

I've got a question about cash flows! When I attempt the consolidated statement of financial positions questions, I write the template in before doing the workings, then slot the figures straight in as I go along (leaving a few spaces in the template in case there are extra rows I need to insert later). Is this good practice? With the cash flow questions, should I try and do a similar thing? The problem I find though, is that apart from the obvious ones, I don't know which items to include in the template until I've gone through the question.Therefore, do you have any advice about how I should approach this question please? Should I start with some kind of standard template, or just prepare it after I've completed the workings? Thanks a lot.

Hi There are NO marks for templates. A P2 cash flow question could spread out over 3.5 / 4 pages - full of information that needs to be disseminated. The marks are in your workings. Read the question, set up your A4 page with Pbit at the top Next line Operating Activities, Half way down the page the heading Investing Activities Three quarters of the way down the page Financing Activities and in the last three lines: Net cash flow for the year Cash and equivalents brought forward Cash and equivalents carried forward Put in the figures for those last three lines (just be careful about assets / liabilities classed as cash equivalents) Then set off from that point putting in figures as you come to them and leaving difficult ones until you've done all the easies! But it's most unlikely to come up in December 2014 ...... probably

Thanks very much for that. I'm really hoping cash flows don't come up, because I'm one of those you describe in your lecture as being in the "hate it" category!

Pity - they are full of easy marks but, as you have reminded me, you either luv 'em or you hate 'em