December 2010 Exam paper - W4a

Working W4A is the calculation of the nci for the statement of financial position. It must be somewhere near the start of consolidations!

What I recall it is usually NCI share - 20% post acq retained profit = £190 to Retained earnings. I think the calculation has previously been more straight forward with just the 2 lines above. I did not realise we could add shares to to value of NCI value at DOA. Maybe because you set it out differently it worried me a little bit. But thanks

You're welcome To summarise, two methods (but I'm only going to tell you the second so as not to confuse you with two different approaches) Value of nci investment + Their share of subsidiary post acquisition retained - Nci's share of any goodwill impairment

Thank you I have to let you know Mike, I think my brain is going to explode. I have spent the whole weekend studying and every evening for weeks and am not sure I am where I need to be. I just hope I can get over 50%.

To quote Corporal Jones from the programme "Dad's Army", "Don't panic, don't panic" What's the use of panicking? It is totally counter-productive! Just keep practicing, keep identifying where the easy marks are, keep picking up those easy marks - at this stage it should be becoming almost routine. When you look at a consolidation question now, you have a good idea where to start and how to go about the entire exercise. Group structure, possibly apportion profits for the subsidiary particularly where profits haven't accrued evenly, goodwill calculation, pups, retained earnings, nci, associate investment ...... .... and that's you ready to bring all the figures together

Thanks Mike, You are right as usual. P.S. Please move back to England so I can attend your lectures.

Doctors' strikes, floods in the North, political correctness out-of-control, in/out of Europe, weak sterling, ......... Hmmm, lots of good reasons to return. I can't imagine why I could possibly want to live in year-round sunshine away from UK!