Foreign sub- G/L on investment

This topic has 3 replies, 2 voices, and was last updated 8 years ago by P2-D2.

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May 28, 2018 at 2:39 pm #454403
Candy
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Dear tutor,

As per your lectures , I proceeded to calculate the G/L on investment in Question 1 of Sep/Dec 2015 Bubble question.

368/8 = 46
368/9.5 = 38.7

Difference = Loss $7.3m, but I cannot see where this figure has been accounted for in their Consolidated accounts?

I separately did workings for Ex G/L attributable to both P & NCI and I am glad to say it was al most identical to their answer – deducted from NCI and translation reserve and impairment in P from GRE, so thank you.

Many thanks in advance
May 28, 2018 at 8:57 pm #454495
P2-D2
Keymaster
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Hi,

The method that I use is different to what is used by the examiner, so you wouldn’t get the same answer.

thanks
May 30, 2018 at 7:09 pm #454931
Candy
Member
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Please explain because I am lost now.

Only one answer can be correct right?

But please explain how I account for Loss $7.3m?

Otherwise I will get to the exam and feel like i do not know what to do

Thanks in advance
May 30, 2018 at 10:12 pm #454982
P2-D2
Keymaster
- Topics: 4
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Hi,

No both answers can be correct as the accounts will still balance. The loss we calculate is shown through group reserves.

Thanks
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