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

New! Lectures for ACCA AAA September 2022 Exams are now available >>

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

need help with Note 1 – Paradigm Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › need help with Note 1 – Paradigm Co

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 25, 2021 at 11:21 am #636467
    acca2021yasemin
    • Topics: 3
    • Replies: 2
    • ☆

    297 Paradigm Co
    (8 marks) (4 marks)
    36 mins
    On 1 October 20X2, Paradigm Co acquired 75% of Strata Co’s equity shares by means of a share exchange of two new shares in Paradigm Co for every five acquired shares in Strata Co. In addition, Paradigm Co issued to the shareholders of Strata Co a $100 10% loan note for every 1,000 shares it acquired in Strata Co. Paradigm Co has not recorded any of the purchase consideration, although it does have other 10% loan notes already in issue.
    The market value of Paradigm Co’s shares at 1 October 20X2 was $2 each. The summarised statements of financial position of the two companies at 31 March 20X3 are:
    Paradigm Co $’000
    ASSETS Non-current assets
    Property, plant and equipment Financial asset: equity investments (note (i)) Current assets Inventories (note (ii))
    Trade receivables (note (iii)) Bank
    Total assets
    EQUITY AND LIABILITIES Equity
    Equity shares of $1 each Retained earnings/(losses) – at 1 April 20X2 – for year ended 31 March 20X3
    Non-current liabilities 10% loan notes
    Current liabilities
    Trade payables (note (iii)) Bank overdraft
    Total equity and liabilities The following information is relevant:

    (i) At the date of acquisition, Strata Co produced a draft statement of profit or loss which showed it had made a net loss for the year of $2 million at that date. Paradigm Co accepted this figure as the basis for calculating the pre- and post-acquisition split of Strata Co’s profit for the year ended 31 March 20X3.

    I dont understand how they have calculted the total loss as 10K for Strata & why?. please help.

    solutions says:

    strata as per draft 4000?
    add back before purchase loss: 6000?
    total 10 K

    September 29, 2021 at 9:06 pm #636715
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6115
    • ☆☆☆☆☆

    Hi,

    Sorry but I think more information within the question would be required here to help you. Send it over and I can help.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)
  • ty0311 on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)
  • Manuga on ACCA AB Chapter 18 – The nature of communication – Questions
  • Manuga on MA Chapter 17 Questions Budgeting
  • Manuga on Budgeting part 4 – Cash Budgets – ACCA Management Accounting (MA)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy