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Ex 3 of Linas and Asta
I noticed that purp on TNCA of $5 on SOPF was deducted from Linas as supposed $10 which was the purp on transfer of the TNCA
The $10 purp on transfer was supposed to be deducted on consolidated RE but instead $5 as a purp was deducted and this has raise the Group RE by $5 and to NCI was a shortfall of that increase value. Although, the balance sheet will still balance .The post acq figure was suppose to be $330 of the Asta instead of the $325 and the Consolidated RE group share will 60%*330=198
Consolidated RE = $765 instead of the 765 CSOFP (500-10+neg goodwill 77+198)
Kaplan added the excess dep to the subsidiary so that the post acq of both nci and RE will show true and fair figures though the balance sheet still balance only NCI will be 40%*330 + nci vaule at acq 158= $290 instead of $288 csfp.
Secondly,
receivables of $4000 as a result of sales made to the subsidiary was not totally deducted from payable on consolidation as supposed intra group sales, because the subsidiary raise a cheque of $2500 to the parent but was not received until 29 November 2007 reporting date. Reporting date was 30 November 2007.What Kaplan did was add the cash as the receiving entity to cash acct on consolidation but to receivables deducted the intra group of 1500 and 2500 making total of 4000 deduction from receivables on consolidation
current liabilty payable on consolidation , only the 1500 was deducted and not the entire 4000 .
Could you please explain?
Have you watched the lectures where I go through the process of accounting for in-transit items and subsequent cancellation of reconciled current accounts?
Have you watched the lecture on the accounting for pups that arise on the intra-group transfer of TNCA and the subsequent treatment of those pups as they are affected by depreciation
It would appear that you haven’t
Equally it seems that you haven’t even worked through the examples in the free course notes that show clearly the affect of intra-group cancellations
Would you object very strongly if I asked you to work through those examples in the course notes (probably quicker than watching the lectures) and then re-consider whether it’s necessary to post a question about the matter on this forum
OK?
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