Exchange difference goodwill — OpenTuition Forums

KKyler9y ago

Hi Guys! I was just wondering why the calculation for exchange difference is different between Sept/Dec 2015 and June 2011 examination as shown below... I tried to fix the format but it just would not show it when posted. Thanks Sept/ Dec 2015 (Loss on Exchange Difference) Goodwill Dinars Ex-rates $ Consideration 368 FV NCI 220 NA at Aquisition (468) ______ 120 DOA 8 15 Impairment (120)(20%)= (24) Avg 8.5 2.8 ______ 96 DOC 9.5 10.1 Exchange difference (12.2-10.1)= 2.1 Impairment Loss = 2.8 June 2011 Goodwill Dinars Ex-rates $ Consideration 276 FV NCI 250 NA at aquisition (495) _______ 31 Exchange difference on Goodwill Consideration 276 NA at aquisition (495)(52%)= 257.4 _______ 18.6 18.6 @DOA rate 6 = 3.1 18.6 @DOC rate 5 = 3.72 ______ Exchange difference gain= .62

KKyler9y ago#1

Hi Wesbys! If I use June 2011 style of getting the exchange difference on goodwill for Sept/Dec 2015 it's giving me a different answer... Not sure why? I'm a bit confused... Hope to hear from you soon.

KKyler9y ago#2

I see. Thanks Wesbys. Then just a follow up question when it comes to the NCI, in Sept/Dec 2015, the FV NCI was converted to DOA rate and the NCI is post acquisition is converted to the average rate in coming up with NCI for Tyslar. On June 2011, these were not converted to DOA and Avg. rates and the Total NCI for Stem was just converted to DOC rate. Any idea with the difference? Hope to hear from you soon.

KKyler9y ago#3

Thanks a lot for the detailed explanations Wesbys. You're the best! :)

KKyler9y ago#4

I guess that means keep up the good work? :) Btw, Wesbys, sometimes the revaluation gain (parent's transaction) is placed on group RE and sometimes they're placed on Group OCE. How would we know where to put these accordingly? Hope to hear from you soon. Thanks!

KKyler9y ago#5

Thanks Wesbys! :)

KKyler9y ago#6

Hi Wesbys! Are you in the house? :) Just want to ask why post acquisition profit for the year of a foreign subsidiary was included in calculating NCI in June 2011 but not for the foreign sub in Sept/Dec 2015? Thanks!