Consolidated financial statement

Follow this link https://opentuition.com/acca/f7/acca-f7-june-2007-question-1-parentis/ If you still have a problem, post again

Dear Sir, Could you please explain to me the December 2013 paper question 1: I) In calculating NCI for Profit for the year, why should we add depreciation & URP rather than deducting as mentioned in Kaplan books. 2) Why are the subsidiary not divided by 6/12 months in consolidated financial statement? 3) When calculating retained earnings in workings (iv), how come we got Southstar’s post-acquisition adjusted losses as 3,000,000?

Because we start off the working in a LOSS for the year of (4,600) whereas usually we start with a profit for the year Looking at the printed solution, all the way down the answer shows time apportionment of the subsidiary - here's the line Distribution Costs just as an example: "Distribution costs (3,000 + (2,000 x 6/12))" Here's another extract from the printed solution in answer to the third part of your question! "Southstar’s adjusted post-acquisition losses for the year ended 30 September 2013 are $3 million (4,600 x 6/12 + (100 additional depreciation + 600 URP))." OK?

Thank you.but why there are no time apportionment for example when calculating current asset?

Assets and liabilities are shown at their respective values AS AT THE YEAR END. We never time apportion an asset or a liability! Have you been following the recorded lectures? Or have you worked through the notes? These are basic questions that should be deemed knowledge after F3 and, if you were exempt F3, they are all explained again in F7 recordings But don't let that put you off posting again - I'm happy to answer your questions :-)

Thank you sir..no have not been following the recorded lectures.just gone through the notes

Then listen to the recordings! If you still have a problem, post again :-)