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hi,
from june 2009 past paper Can I ask where the $5m came from in the calculation of goodwill for mixterd? and also doe deferred tax 0.6 in the net assets why would you minius it?
thanks
Karen – I’m sorry to say that you have lost me.
I’m looking at the ACCA printed solutions for June 2009, question 1, working 2 on page 14 of the printed solutions and …………..I see no “5”
I do see a “6” which is the revised increase by the valuer of the fair value of the PPE
The “0.6” is the deferred tax calculated on the extra depreciation caused by the increase in the PPE fair value – first an increase of 8 followed by a revision of a further 6. That fair value increase is therefore 14 and useful life was 7 giving 2 additional depreciation each year. The fair value has been reduced by 2 so the necessary deferred tax should also be reduced by 30% of 2 = 0.6
OK
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