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consolidated statement of financial position

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › consolidated statement of financial position

  • This topic has 5 replies, 3 voices, and was last updated 7 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 30, 2015 at 1:16 pm #286416
    firmino
    Member
    • Topics: 3
    • Replies: 1
    • ☆

    it may seem that this topic confuses me a little since the workings are a little on the complex side for me i need to know if there is an easier way to calculate each figure

    November 30, 2015 at 2:06 pm #286425
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51551
    • ☆☆☆☆☆

    Not really – sorry!

    November 30, 2015 at 4:39 pm #286476
    firmino
    Member
    • Topics: 3
    • Replies: 1
    • ☆

    so how do we know for sure if we are calculating it correctly

    November 30, 2015 at 5:20 pm #286487
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51551
    • ☆☆☆☆☆

    You have to learn the rules – obviously you don’t know for any of the questions in the exam whether or not you have got the answer right!!

    December 1, 2015 at 7:07 am #286625
    rafayazhar
    Member
    • Topics: 53
    • Replies: 153
    • ☆☆☆

    Tempo Co acquired 100% of the equity shares capital of Lento Co. This consisted of 40,000 shares of $0.50 each. It paid for the acquisition by issuing 60,000 new shares of $1 each in Tempo Co, and exchanging three new shares in Tempo Co for every 2 shares in Lento Co.
    The market value of Tempo Co shares at the time of the acquisition was $3.50 per share. The fair value of the net assets acquired in Lento Co was $50,000.
    What was the goodwill arising on the acquisition of the shares in Lento Co by Tempo Co?
    A $10,000
    B $40,000
    C $140,000
    D $160,000
    ______________________________________________________________________
    Hi sir, please help me to find a route to solving this one 🙂

    December 1, 2015 at 7:35 am #286633
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51551
    • ☆☆☆☆☆

    I am guessing that you found this in a Kaplan book and they should not really have included it – paying the consideration in shares isn’t really F3 but F7.

    However, the value of what Tempo is paying is 60,000 shares that are each worth $3.50, which is a total of $210,000.

    From then on, everything is exactly the same as if they had paid cash of $210,000.

    So…….the goodwill = 210,000 (consideration) – $50,000 (value of net assets) = $160,000

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