Murdoch Group DFS

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jewels.p
jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
Has anyone attempted this paper in the Osbourne Book?

I am trying to calculate the Goodwill on Consolidation in Task 1.1 and get it to be £616,000 but am thinking this is incorrect as Goodwill is usually a rounded amount isnt it?

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  • NO BUSINESS CASE
    NO BUSINESS CASE Registered Posts: 85 Regular contributor ⭐
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    Hi Jewels,

    Can't answer your query but I can say that some of the BPP questions have had goodwill that isn't exactly '000 so to me there is every chance that it could be £616,000!

    DFS in general had a great weekend just going through everything and it seems to have all come together which is good although worried now it will all empty my head before June!!!

    Regards,

    NBC
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    Hi NBC,

    I was studying PTC last week and am only today back on DFS. Nightmare already. Just started to attempt a Practice Exam and am already stuck on the first Task. The figure I gave of £616,000 is defo wrong as I have now just realised that I used the wrong cost figure (great start). I am now getting the Goodwill to be £3,390,000 which is probably still wrong! Aaaaaaaagh
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
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    jewels.p wrote: »
    Hi NBC,

    I was studying PTC last week and am only today back on DFS. Nightmare already. Just started to attempt a Practice Exam and am already stuck on the first Task. The figure I gave of £616,000 is defo wrong as I have now just realised that I used the wrong cost figure (great start). I am now getting the Goodwill to be £3,390,000 which is probably still wrong! Aaaaaaaagh

    Workings

    work out the value of Lively Ltd at the date of acquisation

    Share Capital...........2000
    Share Premium........1000
    Reatined P&L...........4480
    Revaluation.............3000
    Valuation @ A.Date 10480

    Acquired % of S x 75% (1500/2000 x100) workou on number of shares acquired

    Value of s acquired = 7860

    Condideration paid = 9000

    therefore goodwill = 1140

    impairment @10% = 114

    Goodwill at 31/3/04 = 1026
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    Thanks SDV. Just realised what I did wrong when I recalculated I never included the £3,000,000 Revaluation (I included it the first time so that was just carelessness)

    Thanks again
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    Just to let you know I got my SOFP to balance after three hours! At this rate I will get one question done in the Exam!
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