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Hi,
There is a question (Panther Group) which requires a statement of changes in equity to be prepared. The calculations goes like this: b/f RE 12750 less dividend paid 900 plus TCIFY 4878. At the same time TCIFY in CSPL is calculated as 4870 and not 4878. In my calculations it is also 4870..
Do you happen to have this question and could you take a look? Thank you!Hi, it’s BPP FR study text for exams from September 2018 till June 2019 – question at the back number 12. Thanks.
Hi,
There is a mistake in the answer. In the NCI working W2, the TCI column should total 380 and not 395. If you take 40% of the 380 you get 152, thus giving the TCI attributable to the parent of 4,878 (5,030 – 152). We then use this 4,878 in the group SOCIE.
Hope that clears it up for you.
Thanks
Hi
When I follow the formula in chapter 24 OT course notes (which is extremely helpful by the way) I calculate the NCI like this (Sabre is acquired in the middle of the year so I divide the provided results by 2):
Revenue 2150 less COS 1300 less additional depreciation on FV adj 5 less PUP 10 less distribution 250 less administration 150 less finance costs 35 add back i/co interest on loan 20 less tax 110 which gives a PFY of 310. Then by adding OCI 90 it gives us TCI of 400.
PFY attributable to NCI: 310x 40% = 124
TCI attributable to NCI: 400x 40% = 160How did you arrive at 380?
Thank you
Hi,
The 380 comes from adding the numbers in the column in the working, W2.
Thanks
Hi,
I have a question for this Panther Group
Why W6 Group RE carried forward, in calculating post acquisition RE earnings, there is no adjustment for interest loan cost from 1.7.X4 to 31.12.X4
I think the post acquisition profit ( CB balance deducted by OB at the acquisition) will include the loan cost and we should deduct this?
Thank you
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