Question for Sandy Hood - DFS

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Debs2809
Debs2809 Registered Posts: 42 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Sandy

I desperatley need your help. I cant remember how to do my workings for the consolidated balance sheet. The worse of it is I sat the exam for the 1st time in June and passed section 1 but failed section 2.

Any help would very much appreciated as I've seen your replies to previous posts and feel you explain it well for people like me who are having mad panic mental blocks... My baby has also started teething at the moment so not getting much of a chance between fulltime work and motherhood to get my brain back into an accountancy way of thinking...

Kind Regards

Deborah

Comments

  • Yuping
    Yuping Registered Posts: 22 New contributor 🐸
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    where is that sandy hood?
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
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    Sandy doesn't deal with DFS - only costing papers
  • Debs2809
    Debs2809 Registered Posts: 42 Regular contributor ⭐
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    Bluewednesday wrote: »
    Sandy doesn't deal with DFS - only costing papers

    Any ideas who would help me then?
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
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    Have you got any text books still? I seem to remember BPP had a set way of working that made a difference for me.
  • Jo_Jo1977
    Jo_Jo1977 Registered Posts: 2 New contributor 🐸
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    Balance Sheet Workings

    Hi Debs

    The way i do the workings are as follows:-

    1) - Work out share in subsiduray = Shares bought/Total Ordinary Share -

    ie they bought 6000 shares - total number of shares 10000 - therefore 60%

    2) Calculate Goodwill

    Cost paid for investment - (Ret Earn On Acq + Fair Val Adj+ Share Cap & Prem Of sub x Holding Co %)

    make sure to do the calculation in brackets first. then subtract from cost paid.

    3) Calculate Retained Earnings = Retain Earn on Balance Sheet - Retain Earn on Aquisition


    4) Minority Interest

    All calculations in brackets for good will X by sub % + subs retained earnings calculated from step 3 - being the amount of ret earn on bal sheet - ret earn on acq x sub %

    I hope this helps its the way i have done it and it works for me, i just hope i explained well enough..
  • Jo_Jo1977
    Jo_Jo1977 Registered Posts: 2 New contributor 🐸
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    Balance sheet workings continued....

    Forgot to mention.

    Impairment on Goodwill

    The impairment caclulated is deducted from the goodwill figure this figure is entered as goodwill and is a non current asset on balance sheet.

    the impairment amount is then deducted from retained earnings in the equity section on balance sheet.

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