Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Need help with the question below. Need to get some expert advice to master it
- This topic has 7 replies, 4 voices, and was last updated 6 years ago by P2-D2.
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- October 27, 2014 at 7:07 pm #206283
1. Parsley acquired 70% of Sage’s one million $1 ordinary shares for $6m many years ago. At the acquisition date, the carrying value of Sage’s net assets was $5m, and this was deemed to be the same as their fair value. The non-controlling interest was measured using the proportion of net assets method. Goodwill arising on the acquisition of Sage has never been impaired. On 31 October 20X3, Parsley sold 300,000 of its shares in Sage for $6.5m. The fair value of the interest retained was $9.5m. The retained earnings of Sage were $9m as at 30 April 20X3. The only entry posted in Parsley’s individual financial statements is to record the cash received and to credit these proceeds to a suspense account.
2. On 1 May 20X3, Parsley purchased 60% of Saffron’s one million FR1 ordinary shares for FR71m. The non-controlling interest at acquisition was valued at FR29m using the fair value method. At 1 May 20X3, the carrying value of Saffron’s net assets was FR60m but the fair value was FR70m. The excess in fair value was due to an unrecognised brand with a remaining useful economic life of five years at the acquisition date.
This needs to be answered and included as part of a P/L question and OCI. Basically to answer the following.
QUESTION: Prepare the consolidated statement of profit or loss and other comprehensive income for the year ended 30 April 20X4.
October 28, 2014 at 8:21 am #206347Hi Sok
have you worked through / listened / watched the video recordings where I go through situations exactly like this? I believe that they are within chapter 4 of the course notes.
Let me ask you to work through those first and then, if you still have a problem, post again.
Thanks
🙂
October 28, 2014 at 11:00 am #206375Hey Mike,
Are you referring to the course notes or actual lecture videos?
I will have a look 🙂
Thanks
October 28, 2014 at 12:12 pm #206396Both – I work through the course notes on the video
October 28, 2014 at 12:56 pm #206401Is this the one you are referring to?
https://opentuition.com/acca/p2/acca-p2-chapter-4-changes-in-the-composition-of-a-group-part-1/
October 29, 2014 at 8:24 am #206494There are 5 videos for chapter 4 – why not watch them all and then, if you’re still confused, post again
November 23, 2018 at 12:09 pm #485607need help..
November 29, 2018 at 3:31 pm #486454On what exactly?
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