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I was the same for the 5 marker goodwill calculation in c, I started with the 3m consideration but then there were all sorts going on, cash and some sort of share transactions, didn’t have a scooby how to go about it and didn’t have the time to break it down. The other section c was working out the consolidated revenue and operating profit and the two liquidity ratios was alright but I ran out of time to fully complete the commentary. Found some of the OTQ’s pretty tricky.
Hello,
I am just wondering if anyone else had the ABC/DEF ratio question – if memory serves me correctly, I think the pre-calculated operating margin for ABC was incorrect? Did anyone else notice this.
Hi.
I did and you are right. It actually took me a few minutes to figure out how the operating margin for ABC is calculated and tried to find any possible adjustments that could affect calculation. At the end just concluded it might be incorrectly pre calculated.
Also, formula for D/E was a bit strange as it was calculated as: equity+debt/equity, am I right?
Debt/Debt+Equity is also a common ratio. It just depends how each company prefers to calculate it.
After making adjustments I calculated 10% of PBT and added that to SFP in Liabilities part.
Don’t know if it’s right…
Section A question: if liability is overstated at acquisition, Goodwill is also overstated?
have adjusted loan notes int @ 12% nominal rate in both revised profit and current liability…
dont know where went wrong, not able to tally final statement of financial postion.
Section A B was involved with very stupid theoretical questions ,wich i never saw in revisions.There was question about revised goodwill ,i coudn’t find correct anwser ,even i thought there was smth wrong with this question.
Firm acquired 90% of subsidiary, b/f goodwill is 6m$ .Then it was found that,firm has brand FV of 4m$ and contingent liability of 1,2m$.NCI calculated with proportionate method.Calculate revised goodwill? I chose 3,48 if i am not mistaken
Could anyone can sovle this question?
Hi I select 3.48 as well net asset at acq is(4-1.2)is 2.8 and because we are using nci at proportionate method so we have to multiple it by net asset at reporting date because at rep date there is no adjustment so it should be same so we take percentage share of acq date.(6000+(2800*0.1)-2800)=3480 I think I am not wrong If I am wrong please correct me
I saw question in Kaplan in which contingent liability was deducted from goodwill calculation (i mean increases net assets) that’s why i confused about calculation.There was another question in the exam which i added contingent liability to net assets.
Emilyw1 I had the same question with you in Section C. Why it was wrong to take 80% to calculated consolidated P&L?
you’re right! we didn’t need to time apportion, the subsidiary was acquired well over a year ago.
emilyw1 wrote:I found the section c hard statement of profit or loss I got completely muddled and made a huge mistake. Taking 80% of the figures I was thinking back to the statement of financial position. Completely muddled the big 20 mark not sure I could pass with missing such a lot in this large question. Annoyed
I did the same why it was wrong to take 80% for P&L?
yeah we get different exams. i got a consolidated P/L and a ratio interpretation in section c.
hashirjah wrote:you’re right! we didn’t need to time apportion, the subsidiary was acquired well over a year ago.
so if I calculated everything with 80% it’s zero marks?
No not zero marks for the whole question. the technical article for consolidation on the acca website does say you get zero marks for the apportionment, but you will get marks for other adjustments made even though your P/L figures are incorrect.
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