Financial statements - Practise Assessment 4, 2010

Kelly7
Kelly7 Registered Posts: 218 ? ? ?
Hi all

I have my financial statement exam on Tuesday and there still seems to be quite a few problems when I'm doing the practise assessments. I've just done the practise assessment no.4 on the 2010 sets and I can't work out how to get the answer to the first two questions in 1.4.

Also, in 1.5, I would usually work out the retained earning for the parent company by taking away the given in the question from the earnings in the SFP, x the percentage owned but this seems to just use the percentage of the earnings in the question, is this right? On the second part of the question - filling out the income statement I only got the easy bits where you could just add the two together, I have not got a clue what adjustments to use and where the dividend (other income) comes into it, I don't remember learning about this at all at college - only remember doing the full goodwill statement. If anyone can offer any help it would be greatly appreciated as I'm stressed that if I get this type of question I am going to fail!

Thank you

Kelly

Comments

  • kkelly
    kkelly Registered Posts: 51 ? ? ?
    Hi Kelly,
    I can certainly look at them for you, but I would suggest that you put up your workings or if you prefer pm them to me and I'll tell you where your going wrong, which will hopefully help you better that way. You need to try your best understand the "how and why" of these questions and if you can get that its a huge help!!
    Regards
    Kevin
  • Kris1990
    Kris1990 Registered Posts: 52 ? ? ?
    Hi Kelly

    Retained Earnings - The parent is only entitled to the post-acquistion retained earnings so make sure you take the amount given @ acquisition from the amount in the SFP before working out the parents share.
    Dividend - All you've got to do is ignore this in the SPL when compiling consolidated statements.
  • Kelly7
    Kelly7 Registered Posts: 218 ? ? ?
    Thank you both.

    I think ive realised what I was doing wrong with the goodwill now.

    Kevin, i cant really do any workings because I'm not sure which figures I should be using to add to the revenue and cost of sales, and what I should be doing with the dividend information. Just hoping I get the sfp, not that confident with that but know more than the I.s.

    xxx
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