Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Dshaped groups example 4
- This topic has 14 replies, 2 voices, and was last updated 9 years ago by bdolegend.
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- May 19, 2015 at 4:28 pm #247207
Dear mike,
I’m completely lost in the group structure working. How did you get all that figures. I was able to work out the 70% in k with the 30% nci but no idea how to get the nci for k to l and as direct interest in l. Been spending 3 hours on this and it’s killing me. Someone please help.
May 19, 2015 at 5:20 pm #247210still sitting down wondering how to get this fractions. I’m completely lost, god I feel like a fool. Please anyone!! Explain these in percentages first then in fractions like how the previous examples were done without fractions !!!!!!!!
May 19, 2015 at 8:00 pm #247244In this particular example, fractions are easier!
Tell me which percentages / fractions you’re not happy with!
May 20, 2015 at 3:23 am #247276Thanks for the reply.
Just the working 1 group structure for the DNCI, INCI AND TNCI & the Indirect Interest of 2/15 for A in L. It would be helpful to express them in percentages first and then explain how you got them in fractions.
I had to have a couple of single malt shots to clear that feeling of doubtness last night.
May 20, 2015 at 5:29 am #247283Oh yeah and btw, the W4A NCI:-
Share (NCI) of K’s Investment in Liene (30% x 10/15 x 400) = 120
Shouldn’t it be 80??Is there an error in the calculations?
May 20, 2015 at 6:54 am #24729230/100 x 10/15 x 400?
I really do believe that that equals 80!
Are you sure that I’ve calculated it as 120 and it’s not simply a misprint?
Funny that you should ask for the percentages first and then how to get the fraction! The fractions are MUCH easier to arrive at and apply
Have you calculated how much money Anda spent buying Liene shares at $2 each? From memory, it’s $80. So Anda acquired 40 out of the 300 Liene shares and that equals 2/15 of the Liene share capital
Kristina’s investments are $400 and the only investment held by Kristina is her investment in Liene. How many shares at $2 each can Kristina buy with her $400? It’s 200 shares out of Liene’s 300 and that equals 10/15
Now 2/15 + 10/15 = 12/15 and 12/15 is another way of saying 4/5 or 80%
That means that we have a direct nci of 20%
Anda owns 70% of Kristina so nci owns 30% and Kristina has a direct holding in Liene of 10/15
30/100 x 10/15 is the same as 20/100 and that’s just another way of saying 1/5 or 20% and that’s the indirect nci holding in Liene
How’s that?
What was the malt? I’m rather partial to a Speyside – or anything really except the really antiseptic Islay malts. And even then, Bruichladdich I could take any day
May 20, 2015 at 8:40 am #247311Hey Mike,
Thanks for the reply. I just read your post and to be honest I will have to get back to the question and review your comment once I’m doing it !
It did make sense, absolutely, when I was reading it. Thing is, I’ve just completed listening to your lectures on chapter 4. Once I return to that example 4 in chapter 3, and IF I still have any doubts, I will let you know.
BTW – The malt was ‘The Balvanie’. Wasn’t too bad really. I have 2 papers left to complete the ACCA (P7-INT & P2-INT). I’m following all your lectures and I hope I get through these exams next month.
I sincerely appreciate the amount of time you have dedicated to these lectures. Your a good man. Until then, takecare.
May 20, 2015 at 9:01 am #247323Oh yeah BTW in reference to the calculations I posted earlier:-
Share (NCI) of K’s Investment in Liene (30% x 10/15 x 400) = 120
Shouldn’t it be 80??Kindly just have a look at your lecture because what’s printed on the answers is different. (Chapter 3 example 4)
May 21, 2015 at 4:11 pm #247732To save me having to watch the entire lecture, is there any chance that you could give me the “time” where I have erred in my calculation?
Balvenie is a smoothie – I like it!
May 22, 2015 at 7:46 am #247859Hie Mr. Michael,
(LAUGHS). I FINALLY GOT IT! With your explanations and me using the fractions STILL in percentages, I was able to get the final figure exactly. Practice makes perfect SIR.
Your the KING !
Thanks again for your time.
May 22, 2015 at 7:56 am #247865Thank you so much for allowing me to avoid watching my video!
Good luck next month
May 22, 2015 at 8:05 am #247870Oh yeah BTW Sir,
That error was in 16:40 of the second lecture in that example. Sorry for not including it in my earlier message. Internet is slow here.
Regards
May 22, 2015 at 8:06 am #247871Did you get it? Pls let me know
May 22, 2015 at 8:10 am #247874Thanks for the information – I’ll check it out later
May 22, 2015 at 4:20 pm #247970Alrighty.
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