what does TRANSFERRING A LIABILITY means?
It means that you have a liability and ………. you transfer it!
When someone buys your business from you, a sole trader, you will transfer all your assets and liabilities to the person buying your business
The following information was given. (Finance lease)
Deposit (non-refundable) $1150
Cash price $20000
Installment $4000 pa for 7years payable in arrears
Discount rate 11%
What would be the fair value?
I don’t know – are you expecting me to do the present value calculations?
Calculate that present value, compare it with $20,000, and whichever is the lower then that’s the fair value
Sir in the CSOCI where do we take fair value adjustments?like there is a property revaluation and additional depreciation in subsidiary so do we adjust it under Cost of sales and the dep in admin exp?
Why would property revaluation be in cost of sales?
Fair value adjustment would be dealt with as part of the goodwill calculation taking the acquired assets at their fair value. So TNCA in the Consol B/S would be increased by the fair value adjustment, net of the depreciation since acquisition. That depreciation itself would be included within the consolidated Income Statement – maybe as a cost of sale, maybe as admin or it could even be included within distribution costs if the revalued asset were sales personnel cars
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