SBR Mar/June 2019 Q1b Calculation of Exchange difference of NAs (Carbise)

In the question that the carrying amount of assets was 48. It would be the figure in the subsidiaries own balance sheet. Fair value adjustments are only posted as part of the consolidation process. So the extra 16 will be needed to take the acid up to fair value.

Hi Sir I would like to continue this thread as I have query in same question. Question 1 part a i examiner wrote that current year Exchange difference will be recorded in OCI and then accumulate in equity. That I understand well. the point is translation difference for the year is split between parent and NCI each year. Am I right on this point? if I am right then accumulated balance on equity must be share of parent only. Then why in disposal they are recycling only 80 percent of it to profit and loss as this whole relate to parent as we are accounting NCI part with NCI each year. This is evidence from NCI working. will recognition of exchange gain/ loss during year will be accounted for as follows exchange gain on goodwill Dr Goodwill Cr NCI Cr OCI with parent share exchange gain on net assest Dr net assets Cr NCI Cr OCI waiting for your kind response.

None of the textbooks seem to mention this point but the exchange difference recycled will only be the parent share. Bear in mind that when this question was set no one got anywhere near this calculation because of the time pressure. Showing the NCI portion is prizewinner stuff but please make sure you do not run over the time on the question

sir, same doubt. how have they arrived at the value of 64m 48 is the carrying value at 1/1/16 how are we getting the rest 16m?

Is this the unamortised portion of the FV adjustment. Please refer to my recorded debrief in the revision section of our site.