Dec 2014 sec b Q 3

Before I look at it in detail, please confirm whether the nci is on a fair value basis or is it proportional?

Fair Value basis....

The workings given in the Examiner's answer is this.... (vi) Non-controlling interest in statement of financial position At date of acquisition (w (iv)) 4,500 Post-acquisition from statement of profit or loss and other comprehensive income 300 ––––––– 4,800

Just for your information I have not started CSoP/L yet..

According to working W2 in the printed solution, the amount attributable to the nci for this year's profits is AFTER the goodwill impairment Ok?

According to working 2 profit after Goodwill impairment is 900 and 20% of that is 180.. So where does the figure 300 comes from?? If you have to get 300 you have to take 1500 which is post acquisition profit BEFORE goodwill.. Please clarify(With numbers if not asking for too much....)

I don't honestly know! According to me (and obviously to you too) the nci on the sofp should be 4,500 + 280 - 100 = 4,680 Heaven knows what they've done! I'll need to rework the question and, if I can decide what the answer has done, I'll let you know

:) That's exactly what i got... But please let me know as soon as you figure it out!!!!! Regards Sid

Also in that Question.. Inventory in CSoFP Where does the figure 1200 comes from..... If it is possible can you do the full question for me please???

1,200 is the inventory at the subsidiary - straight from the question!

I did this yesterday. There is a negative 120 which is share of depreciation and share of impairment and then a positive 120 which is a share of the revalued asset of 600x20% =120

So add the last 120 to 180 to get 300

Ah Robert, thank you! There's an unrecorded gain in the fair value of the asset post-acquisition of 600 and the nci is entitled to 20% of that gain = 120 So 4,500 + 180 (share of post-acq after goodwill impairment has been expensed) + 120 share of TNCA fair value increase Robert, the "negative 120 which is share of depreciation and share of impairment...." Depreciation has nothing to do with 120. It's just share of impairment But thanks anyway!

Thank you. # In note 4 there is a CIT 400 i deducted it from Receivables and added it to cash. Is that Treatment right?

And what is the treatment for note 2 $ 1 million 10% loan notes... How about it's finance cost???

Dr Cash and Cr Receivables is correct

Cancel the investment of $1,000 shown in the parent against the $1,000 non-current liability shown in the subsidiary As for interest, it should be accrued for the number of months that the loan note has been in issue!

Happy :) Thank you.... And is there any chance that Section B question comes from Cash flow... I am not good at it...

Of course there's a chance that it could be a cash flow question. You're no good at them? Then practice!

:)

There's no better solution :-)