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Hi,
Hope you are well.
I just wanted some assistance relating to consolidated statements. When working my way through the practice book of questions, I keep coming across questions whereby they are not stating the percentage of which the parent company owns and the subsidiary owns. (e.g. A purchased 80% of B’s equity). Is there a way for me to work this out using the SOFP and SOPL? Also, will this be the format for the exam? Whereby they ask us to calculate certain things without letting us know how much the Parent owns and how much the Subsidiary owns?Thank you so much in advance!
Kedesh 🙂If the % is not given then you will have the information to be able to calculate it yourself. In the SOFP of the parent company the investment will appear as an asset and it will state how many shares. In the SOFP of the subsidiary will appear the share capital and again it will state how many shares. So you can calculate the % by dividing one by the other.
The examples in your Revision Kit will be typical of the questions asked in the exam (assuming that you are using a Revision Kit from one of the ACCA Approved Publishers).
Clears everything up for me.
Thank you so much Mr Moffat! Much appreciated. 🙂
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