consolidated financial statement

Of course. However you should not use the notes on their own - they are lecture notes to be used with the lectures. It is in the lectures that I explain and expand on the notes. If you are unable to watch the lectures then you need to either pay to attend a course somewhere or else buy Study Texts and study from them.

Dear sir, In practing , there are some question in consolidated financial statement or income statement ,that do not mention how much % of subsidiary , they only mention, The following are the financial statements relating to Black , a limited liability company, and its subsidiary company Bury. so when we calculating Retain earnings how can we get the subsidiary % ?. but they also give some additional information about intra group sales, and there they told Black sold goods which cost $ 12 million to Burry, Black invoiced Bury at cost plus 40% . Bury still 30 % of these goods in inventory.

The question will always tell you how much of the subsidiary is owned. Either they will tell you the %. If not then you will see on the parent companies Statement of financial position how many shares they own, and you will see on the subsidiaries Statement of financial position how many shares there are in total - then you can calculate the % yourself. With regard to intra group sales and goods remaining in inventory, how to deal with these is covered in detail in my free lectures (as is everything else relating to consolidations). (Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.)

Thank you very much , sir . I alwayes see your lecture before practice :)

You are welcome :-)

Thanks sir.

You are welcome :-)

Dear sir , when do we show unrealised profit ,in NCI calculation ?

Have you watched all of the free lectures on consolidations? There is unrealised profit when goods have been sold from one of the companies to the other company and some of the goods remain in inventory. If the goods were sold by the subsidiary to the parent and some remain in the inventory of the parent, then the unrealised profit will affect the NCI.

yeah I have watched all of the lecture , Many many thanks sir, now everything is clear.

You are very welcome :-)

V acquired 75% of the equity share capital of L on 1 September 2013. The retained earnings profit of the 2 individual company at the beginning and end of their financial year were as follows. Retained earnings 1 jan 2013: -V: $596 -L: $264 Retained earnings at 31 dec 2013: -V:650 -L:336 What is the parent company's share of consolidated retained earnings that should be reported in the consolidated SFP of V group at 31 DEc 2013? Answer is $668 Could you explain how to get the answer as in the book the workings are a bit complicated to understand? Thanks

L earned 336 - 264 = 72 during the year to 31 December 2013. L acquired the shares on 1 September 2013 - so 4 months before the year end. So the post-acquisition profits are 4/12 x 72 = 24 of which V owns 75% So the total retained earnings are 650 + (75% x 24) = 668

Dear sir. I just want to confirm something In the exam, will there be questions, where a company has bought another company during mid- year and we have to take only half the sales,expenses and so on of the subsidiary company? ( There are certain questions in the BPP book, where a company has bought another company during mid- year or some month before the financial period)

Dear sir, from you above workings to calculate retained earnings, why did you take Retained earnings at 31 dec 2013 and not Retained earnings 1 jan 2013

First question - yes. (Although mid-year is not so likely in F3, it is more likely in F7). Second question - because the question asks for the retained earnings at 31 December 2013! So it is all of V's plus V's share of L's post-acquisition earnings which are from 1 September 2013 to 31 December 2013.

Thanks sir

You are welcome.