Comprehensive example chapter 9

Hi, the value of Dace is calculated by adding the 250,000 investment by Agne to the value of the nci.

We can achieve the same result by keeping the nci separate but I concluded some time last year that there is no need to keep them apart.

I've just finished recording a revised answer to Agne and Dace which will be uploaded soon. There's not a huge difference from the previous version, but this latest recording incorporates two revisions caused by recent IASB announcements.

The first is the treatment of dividends paid by the subsidiary out of pre-acquisition profits and the second is the net treatment of an unrealised profit arising on the transfer of intra-group TNCA

Sorry if this is too late for your own studies!

Thanks alot for the clarification.For me treating the NCI investment separately sits in well and seems easier.I don't know if it would be wrong to continue doing this in the light of the new developments that you have just highlighted to have waranted your new working format.Your ans was timely cos i wasn't revising as yet but happen to have wanted to confirm why my ans was different from the one you showed as the answer.
Another question is on a sub-subsidiary investment:
In working out the cost of the investmnt by the holding company,do i multiply with the resulting %(%investment by holding co * %investment by subsidiary) or do i simply take the direct investment by the subsidiary??
Thanks for the very resourceful and clear lectures.You really know your stuff

Hi

Thanks for the kind words. The cost of the sub - sub? In F7? !!!

F7 students, please don't read this :)

Take our % holding in the subsid * the cost by the subsid in the sub-sub

Is that ok?

As for the revised layout of the goodwill calculation - yes, I too prefer teh previous way. But Steve Scott is recorded as saying that it's not in accordance with the IFRS so, reluctantly, I've had to change

Thanks. I now get the multiplication in arriving at the sub-sub cost of investment.
It seems one needs to be looking at the new IFRS as they come out lest one uses outdated formats.Didn't know that IFRS was this dynamic!
Kind regards.
ACCA suffering student

welcome