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Sir you have uploaded a new lecture with a new example on this topic.
There was a different video by Chris prior to this. So is the old video irrelevant?
And in example 3 why are we only taking net assets at disposal of 350m and applying it to increase in NCI of 10% and not goodwill on acquisition of 50m? I clearly remember in the old video and notes Chris had taken both net assets and goodwill and attributed that to NCI.Sir in one of the articles in ACCA website there’s a similar example. Even there they have included both net assets at disposal and goodwill on acquisition and attributed that to increase in NCI holding.
The example is based on proportionate goodwill as stated in the lecture.If I had specified full goodwill then I would have taken a proportion of the goodwill as well.
It’s always been a thorny issue!
Don’t forget that, when SBR is marked, calculations don’t score much and you get the marks for approach – lots of people make different assumptions and get full credit.
What counts to pass is that you are able to EXPLAIN what you are doing in reasonably clear terms.
Steve
http://www.casplus.com/pubs/files/0807ifrs3guide.pdf
has detailed guidance and you can find a very similar example in the above document – example 12C – the key point raised on the previous page of the document is that IFRS 3 is very unspecific about rules
Implication for your SBR marker – give credit for anything reasonable!
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