Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Example 2 – Group SFP incl. Associate – Chapter 25

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Example 2 – Group SFP incl. Associate – Chapter 25

  • This topic has 2 replies, 2 voices, and was last updated 1 year ago by P2-D2.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • July 27, 2021 at 9:25 am #629554
    Aayush98
    Member
    • Topics: 17
    • Replies: 9
    • ☆

    Hi,

    I was working through this example 2 and in the answer in the notes on page 167 of the notes, I have seen the FV is 400. I am unable to get this figure since my calculation is $1850m FV of net assets – $1800 (Net assets according to draft financials) = $50m as the FV with a extra depreciation of $50m/10 years remaining useful life = $5m.

    The answers suggest $400m for FV and $80m for extra depreciation.

    Kindly note this affects all other workings and hence need further clarification on the same.

    Please confirm why the figures are not $50m for FV – PPE and not $5m for Depreciation in the answer.

    Waiting to hear from you soon.

    Kind regards,

    Aayush Shah

    August 18, 2021 at 8:48 am #631907
    Aayush98
    Member
    • Topics: 17
    • Replies: 9
    • ☆

    Hi,

    Kindly advise on the question above.

    Thank you.

    Aayush Shah

    August 19, 2021 at 10:12 pm #632267
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6473
    • ☆☆☆☆☆

    Hi,

    If the FV of net assets is $1,850 million at acquisition and the equity share capital is $1,000 million and the retained earnings $450 million then the difference is $400 million – 1,000 + 450 +400 = 1,850

    Thanks

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.