• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

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

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

F7 CSFP Consideration Loan Notes Question Hedra

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › F7 CSFP Consideration Loan Notes Question Hedra

  • This topic has 2 replies, 2 voices, and was last updated 11 years ago by MikeLittle.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • April 1, 2014 at 4:37 pm #163913
    panditbandit
    Member
    • Topics: 5
    • Replies: 20
    • ☆

    Hi there

    Am going through ACCA papers for revision and I;m a little confused on the question Hedra Dec 05 I believe.

    The question states that the Subsidiary has accepted a $50 million 8% loan not at the date of acquisition from the parent, but when I check the mark scheme it is not part of the purchase consideration.

    April 2, 2014 at 12:40 pm #164018
    panditbandit
    Member
    • Topics: 5
    • Replies: 20
    • ☆

    Also in the question, do you include Revaluation Reserves in the Consolidated Reserves?

    April 15, 2014 at 7:26 pm #165379
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    This loan note was not issued to shareholders in the parent’s efforts to gain control. IF the acquirer had issued shares, at a premium, plus some cash plus maybe deferred cash to the former shareholders of the subsidiary, all of those would be included in the calculation of goodwill. Additionally, the parent could have issued loan notes to these former shareholders (effectively deferred consideration)

    But in Hedra, the loan note was accepted BY THE SUBSIDIARY. It was not given to the former shareholders as part of the price that Hedra had to pay to acquire control. It was a separate issue between the parent and the subsidiary newly-acquired company

    OK?

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

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • julio99 on Impairments – Impairment (CGU) – ACCA Financial Reporting (FR)
  • effy.sithole@gmail.com on EPS – diluted EPS Example – ACCA Financial Reporting (FR)
  • Ken Garrett on The Finance Function in the Digital Age – CIMA E1
  • DeborahProspect on ACCA SBR Specimen Exam 2 Question 1
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in