• 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

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

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

June 2014 Question 1 : Increase in NCI in Nathan

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › June 2014 Question 1 : Increase in NCI in Nathan

  • This topic has 4 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • November 16, 2015 at 12:03 pm #282818
    Sheryar
    Member
    • Topics: 33
    • Replies: 18
    • ☆☆

    Consolidation question 1 of June 2014 Exam , i have a doubt on increase in NCI figure of Nathan as in the answer they have taken the % decrease x carrying value of the investment .

    But in Kaplan text its given that in case of increase in NCI , u take % increase x (Fair value of net assets + goodwill (ALWAYS)), when i am doing it according to this method i am getting increase in Equity of 6.3m whereas answer as per the other method is 5.3m

    So can you please help me to understand this issue?????

    November 16, 2015 at 12:08 pm #282822
    Sheryar
    Member
    • Topics: 33
    • Replies: 18
    • ☆☆

    sorry in examiner answer its Carrying value of investment x (% increase/total interest), i get this point but in kaplan text this method is given for decrease in NCi and for increase in NCI ,i have already written above.

    November 16, 2015 at 12:19 pm #282830
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Hi – you have me at a disadvantage in that I don’t have any Kaplan material to hand!

    The value of the nci, no matter at what date you are considering the issue is always going to be:

    Value as at date of acquisition +
    Share of post-acquisition retained earnings (and any other reserves increased since acquisition) –
    Their share of any goodwill impairment

    Does that formula not work in the question to which you refer?

    November 16, 2015 at 2:52 pm #282872
    Sheryar
    Member
    • Topics: 33
    • Replies: 18
    • ☆☆

    Actually the requirment (i) of the question was to make a consolidated statement of profit and loss , and when i calculated the gain on disposal(increase in equity) i got 6.3m(using formula : % increase x fair value of net assets + total goodwill) , whereas in answer it was 5.3m(using formula : % increase x carrying value of invesment )

    Requirement (ii) of the question was to explain how this increase in NCI is going to effect consolidated statement of financial position , as per examiner answer its effect in C.S.F.P will be 6.3 million , calculated exactly using same formula which i used for C.S.P.L

    so i am confused is it like , for C.S.P.L , we have to take carrying value of investment and for C.S.F.P , we have to take fair value of net assets plus goodwill ??????????

    November 16, 2015 at 6:43 pm #283092
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Surely there are two gains on disposal – one in the parent’s own records and one for the group

    This is illustrated in the course notes in the question Diana and Liga (I seem to remember)

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 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

  • Kim Smith on AA Chapter 9 Questions
  • Walkera on Basic Variance Analysis part 1 – ACCA Performance Management (PM)
  • kartierclass on AA Chapter 9 Questions
  • revathik on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Josfel on Relevant cash flows for DCF Taxation (example 4) – ACCA Financial Management (FM)

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