DFS Consolidated Accounts

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Has any one got any tips!!!!!!! i cant get it into my head

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS Consolidated Accounts

    what is it you are struggling on?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS Consolidated Accounts

    The calculations on the balance sheet, good will etc
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS Consolidated Accounts

    have you done any past papers? is it the whole thing you struggling on or just part of it? <BR>is it just the working out of the goodwill or the whole consolidation inc doing the bal sheet?<BR>there are no tips, you just need to practice as many examples as you can till you find it clicks.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS Consolidated Accounts

    OK, here goes (this will help me revise it too so thanks !)<BR><BR>1. Work out share held my parent and minority interest (question normally tells you number of shares bought and share capital value at time of purchase)<BR><BR>2. Work out any fixed asset revaluation (this is fair value less book value and results in the journal DR Fixed assets CR Revaluation reserve)<BR><BR>3. Work out goodwill. This is the price paid (the investment) less the parents share percentage x (share capital at time of acquisition + share premium at time of acquistion + profit and loss account AT TIME OF ACQUISTION (watch out this its normally stated somewhere seperately in the question and may not necessarily be the same figure as on the balance sheet) + revaluation reserve)<BR><BR>4. The question may say that goodwill is amortised. If so, divide goodwill amount by number of years. This is the amortisation per year and results in journal DR Profit and Loss reserve CR Intangible Assets<BR><BR>5. Work out the parents percentage of post acquistion profits (should be profit and loss reserve from latest balance sheet less the P&L balance used in point 3 if I remember correctly)<BR><BR>6. Work out minority interest. This is total of percentage x (pre-acquistion profits + post acquistion profits). The pre-acquistion profit is the same as the figure for the total of the items in the brackets in point 3. Post acquistion profit is per point 5.<BR><BR>7. Fill in the balance sheet ! Remember here to: add revaluation to tangible assets figures, put in the goodwill as an intangible asset (less amortisation for year), DON'T include the original investment, share capital/premium is for PARENT only, deduct the goodwill amortisation from the profit and loss <BR><BR>I think that's everything !<BR><BR>Let me know if it helps<BR><BR>Nicky :-)<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS Consolidated Accounts

    Make sure you cross through every figure that you use. This will enable you to help balance the B/sheet and prevent double-counting.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS Consolidated Accounts

    thanks!<BR>

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