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Logic for retaining information

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Logic for retaining information

Viewing 4 posts - 1 through 4 (of 4 total)
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  • October 1, 2019 at 12:55 pm #547747
    ginetta86
    Participant
    • Topics: 18
    • Replies: 40
    • ☆☆

    Dear tutor,
    I understand that study, practice, study practice and practice, practice helps.
    However, struggling to grasp the concept of some group accounts consolidation calculations. I have looked at all the lectures and they are very good.

    Could you please advise on what is the concept to bear in mind when calculating

    Retain earnings
    Goodwill
    Fair value adjustment
    Unrealised profits
    Group profit on disposal

    Thank you

    October 3, 2019 at 9:08 pm #548069
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    Hi,

    I’m really sorry but I don’t quite understand what you mean by “the concept to bear in mind when calculating”.

    The concept that we are using when consolidating is that of substance over legal form if that is what you are referring to.

    Thanks

    October 4, 2019 at 6:47 am #548096
    ginetta86
    Participant
    • Topics: 18
    • Replies: 40
    • ☆☆

    Thank you for your response.

    What I mean is that instead of just memorising the pro formas for calculating the above e.g. Retained earnings, goodwill, retained earnings reserve, exchange differences, is there a reason/ concept why we calculate these to consolidate.

    This would help remember in the exam should I forget the proforma.
    I understand that we are not going to be asked for a whole group consolidation but extracts.

    Hope I am being clear.

    October 6, 2019 at 9:18 pm #548237
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    Hi,

    You won’t forget the proformas in the exam and if you did then you won’t be able to remember the reasoning for the calculations anyway. If ever you’re stuck then just go back to substance over legal form and the single entity concept.

    Thanks

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