Mid-year acquisitions Example

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Comments

  1. um, what happened to the media player? it was fine yesterday, how come its shrunk now? cant even view it on full screen..

  2. Pls how did he get the 23,500 as the pre acquisition in working 3 of question RObertas and INgrida

  3. How do we figure out if the 1500 wasn’t pre acq. share prm.?

  4. Why do we not have share premium in subsidary incorporated into CS of FP?Beacause it was formed before acquisition?what’s the treatment for new share premium,that is generated by subsidary issuing new share after acquisition?

  5. Where in the Balance Sheet do you add the Fair Value Adjustment (20,000)?

  6. why we have to add 6000 (goodwill) to retained earnings?

    • @ginduja21, because it’s like a “profit” – it’s called a bargain purchase. We USED to have a complicated way of crediting negative goodwill to the retained earnings over a number of years, but that method has now gone.

  7. what is the wrong if i apply the goodwill in negative value?

  8. How did that 25% of 28000 come from? I got the point about 25% but 28000 figure? Is it from FV of SNA @DOA???!!!

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