DFS consolidated balance sheet

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jackieshep
jackieshep Registered Posts: 68 Regular contributor ⭐
HI everyone,

I was a bit surprised about the 66% interest in the subsidiary company. I expected a round figure of 60% or 40% for instance. I didn't know whether or not to round it up, as when you are talking about £millions, rounding it up would affect hundreds of pounds. Needless to say I did 66.66% for parent company and 33.34% for subsidiary. This way I thought the figures would be more reliable and correct??:001_unsure::001_unsure:

Your thoughts anybody

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  • jeskimosdad
    jeskimosdad Registered Posts: 11 New contributor 🐸
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    Won't be wrong but if you just stuck with 1/3 and 2/3, the figures worked out perfect.
  • Marie1507
    Marie1507 Registered Posts: 8 New contributor 🐸
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    Yeh that threw me as well. I rounded it up to 67% and everything balanced. Surely as long as it balanced it was ok.
  • mehmet
    mehmet Registered Posts: 113 Dedicated contributor 🦉
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    I'd think so. I didn't do the paper, but I'm sure they'd take 66%, 67% or 2/3rd's as the correct answer. Plus, even if they didn't (or you got something completely different), remember that the "own answer" rule applies; so although you might lose a mark for giving the wrong proportion "owned" by the parent, providing you calculated everything else the right way, you would gain marks.
  • pennie moore
    pennie moore Registered Posts: 31 Regular contributor ⭐
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    I just put a new thread on as I was a bit put out by the 66 or 67 lol, I did 66 and was a bit worried it would fail me ??
  • jody m
    jody m Registered Posts: 7 New contributor 🐸
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    i did 66.66666 as it was the way to get the 8000 shares they had acquired i asked my boss when i went back to work and he agreed but i doubt thye will penalise the rounding i just didnt like the difference is the shares as it did state they purchased 800o shares not 8400 shares. why they did it anyway who knows never seen it like that on any of the past papers! not a bad paper just dreading PTC on friday!!
  • Moseley_21
    Moseley_21 Registered Posts: 59 Regular contributor ⭐
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    Yeah PTC!! im not looking forward to that on friday either!! :-(
  • MrGofOxford
    MrGofOxford Registered Posts: 22 New contributor 🐸
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    I used 2/3 & 1/3 because it just made sense with the figures, the revaluation was 4500 & the other figures were all divisible by 3 so I just applied a bit of common sense to make it easier for me, as long as all of your workings are correct & the eventual result balances then you should pass the question.

    I can't believe we have to wait s long for the results now. It's torture!
  • lizrochford
    lizrochford Registered Posts: 58 Regular contributor ⭐
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    I'm glad there is a discussion about this part of the exam as I rounded it up to 67% and the subsidiary down to 33% as I could not get it to balance using the exact %, I guess this won't really matter well I hope not anyways!
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