can someone give me some tips to solve a consolidation question in 2.5.......i always get stuck in them.....i do it witha t account approach......whenever there s a dividend or neother thing i get it wrong ...please share if you have some good concept how to apprach it..

Have you read all the topics well?
In 2.5 questions various topics are tested in same question.
And consolidations always differ from question to question.

thanks Fu for making me more nervous :? ......i thought if i will practice 2 or 3 i will b able to solve the 1nz in exam but seems it wont be that easy...but thanks for replying neways....

Come on why you become more nervous.I wanted to lighten your weight i just wanted to tell you that there is not much to worry about theory beacuse in consolidation question you will never be asked to write theory.

but i guess you did a good thing by telling me that because now i will practice more.....but i did practice and still i am confused...i dnt know what to do

Remember one old quote



don't confuse just work hard and be confident.If you'll loose confidence then inspite of good preparation you will not perform upto level.

Rooha,

With the balance sheet, tend to think in terms of "what you pay and what you get for it" If you get these close, then you'll get the goodwill figure close. Think of the date of acquisition and remember what to do with pre-acquisition profits etc.

With the Income statement bear 2 things in mind: 1)Date of acquisition (and therefore amount of profit to take into the consolidation and..2) the percentage shareholding.
These two are the basics for collecting marks i believe, because once you are carving through your question with these clearly in your head, then lots of other mark-worthy calcs will fall off your pen.

Oh yes, also make sure to remember to treat the type of entity appropriately, eg treat an associate as an associate and not a subsidiary, etc..

Remember, little things like a dividend payment done wrongly will only lose a mark here and there, so don't worry..
Just keep practising the big stuff.
only my opinion.

And hey, have a great exam..