Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Example 4 D shaped structure
- This topic has 2 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
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- June 29, 2015 at 11:37 am #259055
Dear Mike, there was a question in May I couldn’t find the asnwere to. I have the same question. Could you pls explain it?: Thank you!
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sorry to keep bothering you. Quick question:
In Ex 3 we do 2 goodwill calulation M in D and M in V (parent in subsidiary1 and parent in subsidiary 2)
But in Ex4 we do 3 goodwill cacalculatios, A in K, A in L (and then a 3rd one which seems inconsistent with Ex3 method) K in L. Why do we need this 3rd goodwill calculation and why dont we need it in Ex3? Something to do with dates of purchase?
(I must have overlooked this different treatment part first time around)
—-June 29, 2015 at 2:54 pm #259071reading it again – is it that both a) A in L and b) K in L are both goodwill of A in L (same as the case in Ex 3 with M in V). They are separated in Ex 4 simply account for for direct investment of A in L in a) A in L schedule?
June 29, 2015 at 3:38 pm #259078Yes, I think is from memory. It’s because there is that direct holding of Anda in Liene
Anda has two lots of direct goodwill, one in Liene 8% and another in Kristina 70%. But she also has some indirect goodwill in Liene through Kristina
Ok?
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