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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Acquisition achieved on stages
consolidation acquisition achieved at stages . “Associate turned into subsidary.”
e.g 1 jan 01 25 % holding 2020,000 purchase consideration ,company reserve 58oo,ooo.
at 31 dec 01 the fair value of 25 % was 2440,000 .
further 35% holding purchased on 30 sep 02 for 4025,000(the FV of $14.375 per share acquired on that date), company reserve 7800,000.
what will be the calculation of profit on derecognition of investment?
If I can understand your figures, it looks like number of shares representing 25% multiplied by $14.375 minus $2,020,000