Murdoch Group DFS

jewels.p

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?

NO BUSINESS CASE

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

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

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

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

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!