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Sir,
i am confused about a point in consolidation question related to Q: Merchant AND Q: Grange in Kaplan kit for p2(INT).
My question is,when calculating movement on equity on disposal of nathan we are not including goodwill in net assets but when we are calculating movement on equity on disposal of fence in grange question we include goodwill in net assets..why is that??would appreciate if you clear this confusion..thanks
Hi,
I’ve answered this one recently on another thread. If you look at the thread entitled “part disposals-grange and merchant” by hj it will give you the answer.
Thanks
Hi,
The calculations are different in each of the questions. On the disposal of the investment in Nathan they have calculated the gain in the individual accounts of the parent, where we compare the proceeds to the carrying value of the investment disposed of. This gives the $5.3 million which is then removed from the group accounts to be replaced with the movement in equity. We don’t need to calculate the movement in equity in the question as that would be shown in the Group SOCE/Group SFP and here we’re only asked to prepare the Group SPLOCI.
In Grange we were asked to prepare the Group SFP and so we need to look at the movement in equity. This compares the proceeds to the change in the ownership of net assets, which includes goodwill.
Thanks
Sir,
June, 2014
there were a director’s award option.
in that calculation why for the 30 april, 2014 the grant value was not taken at fair value $100 in kaplan’s answer.
it was 6 directoes* 100* 8000**2/3
where fv was 110please reply!!
Hi,
In future if you have a new question that is not related to the current thread can you please start a new one so as to benefit other students please.
I’ll answer your question this time tamjidat but in future I’all have to ask you to start a new thread.
It is an equity settled share based payment and so we use the fair value at the grant date which was $100.
Thanks
thank you sir.
I asked you here only because the topic is consolidation.
ok sir in future I will ask you in a new thread.
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