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CIMAPRA19-F02-1 Exam - Topic 1 Question 97 Discussion

ABacquired 90% of the equity ofYZon31 December 20X2. On the same date YZ acquired 60% of the equity shares ofVW for $750,000. AB has no other subsidiaries.The following information regarding YZ and VW was available:Whatamount will AB include in its consolidated statement of financial position in respect ofnon controlling interestat 31 May 20X6?
D) $811,000
A) $816,400
B) $741,400
C) $840,600

CIMAPRA19-F02-1 Exam - Topic 1 Question 97 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 97
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

ABacquired 90% of the equity ofYZon31 December 20X2. On the same date YZ acquired 60% of the equity shares ofVW for $750,000. AB has no other subsidiaries.

The following information regarding YZ and VW was available:

Whatamount will AB include in its consolidated statement of financial position in respect ofnon controlling interestat 31 May 20X6?

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Suggested Answer: D

by Felicitas at Sep 19, 2024, 01:25 AM

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Celestina
9 months ago
I thought it was supposed to be $840,600, but now I'm confused!
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Jesusita
10 months ago
Wait, how do we know the valuation of VW affects this?
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Dahlia
10 months ago
Not so sure about that, I lean towards B, $741,400.
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Lamar
10 months ago
I think the answer is A, $816,400. Seems right!
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Ashlyn
10 months ago
AB owns 90% of YZ, so NCI is based on the 40% of YZ's equity.
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Florencia
10 months ago
I feel like option B might be the right answer, but I need to double-check how the calculations for the non-controlling interest were done in our practice exercises.
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Peggie
11 months ago
If I recall correctly, the non-controlling interest should be based on YZ's share of VW’s net assets, but I’m not entirely sure how to adjust for the acquisition date.
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Royal
11 months ago
I think we need to consider the fair value of the non-controlling interest at the acquisition date, but I’m a bit confused about how to apply that to the figures given.
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Terina
11 months ago
I remember we practiced a similar question about non-controlling interests, but I’m not sure how to calculate it with the percentages involved here.
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Cristy
11 months ago
This seems straightforward enough. I'll start by calculating the non-controlling interest in YZ, then do the same for VW and add them together. As long as I don't make any silly mistakes, I should be able to nail this.
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Ressie
11 months ago
Hmm, I'm a bit confused by the information provided. I'll need to carefully review the details about the acquisitions and the financial statements to figure out the right approach.
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Sabine
11 months ago
This question looks tricky, but I think I can work through it step-by-step. I'll need to calculate the non-controlling interest in YZ and VW separately, then combine them.
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Selma
11 months ago
Okay, I've got this. I just need to apply the relevant consolidation principles and do the math. I'm confident I can get the right answer if I take my time.
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Deja
1 year ago
Looks like someone's been practicing their dad jokes. Keep the puns coming, it'll make this exam a little more bearable!
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Tanesha
1 year ago
C) $840,600
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Trinidad
1 year ago
B) $741,400
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Rueben
1 year ago
A) $816,400
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Dion
1 year ago
Alright, time to put on my accountant hat and crunch some numbers. This question is like a puzzle, and I'm the master puzzle-solver!
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Lilli
1 year ago
User1: Let's go with that then, A) $816,400.
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Ollie
1 year ago
User2: I agree, it seems like the correct amount to include in the consolidated statement.
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Wenona
1 year ago
User1: I think the answer is A) $816,400.
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Sherill
1 year ago
This is a classic case of non-controlling interest calculation. I'm pretty confident that D is the correct answer, but I'll triple-check just to be sure.
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Darci
1 year ago
I agree. Let's make sure we have the right amount for non-controlling interest in AB's consolidated statement.
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Dianne
1 year ago
Yeah, it's just a matter of applying the formula correctly. Let's double-check our calculations.
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Tyisha
1 year ago
I think D is the correct answer too. The calculation seems straightforward.
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Jacinta
1 year ago
Hmm, I'm feeling a bit unsure here. Might need to double-check my workings. Consolidation can be a real brain-teaser sometimes.
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Iluminada
1 year ago
Okay, let's see... A is too high, B is too low, C is too high again, so I'm going with D. Gotta love these tricky consolidation questions!
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Willetta
1 year ago
Great, looks like we're all on the same page with choosing D as the answer. Let's hope we got it right!
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Nathan
1 year ago
I agree, D seems to be the best option based on the information provided. Consolidation questions can be tricky, but it's all about careful analysis.
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Gayla
1 year ago
Yeah, it's important to pay attention to the details in these consolidation questions. D seems like the most reasonable choice.
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Polly
1 year ago
I think D is the correct answer too. These questions always make you double check your calculations.
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Keneth
1 year ago
I'm not sure, but I think the answer might be C) $840,600. Can someone explain the rationale behind the calculation?
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Noelia
1 year ago
I agree with Lai, because non-controlling interest is calculated as 40% of the subsidiary's equity, which is $2,041,000 x 40% = $816,400.
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Lai
1 year ago
I think the answer is A) $816,400.
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