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Q. when hever aquired shares in spiro the fair value of spiros(subsidary) net assets equalled their book values with the following exceptions:
000
property,plant,equp. 50 higher
inventories. 20 lower (sold during 2014)
depreciation arising on the fair value adj to non current assets since this date is 5000plz help
With what?
There’s no question in your post!
Please identify exactly what it is that you are unsure about
wat will be the amounts coming under movements?
if adjustment is
at acq. movement. yr end.
ppe. 50000. 5000. 45000
invent. ( 20000) ?Ah! You’re using the Kaplan style of calculating post-acquisition profits!
What’s the matter with:
(20,000), 20,000, nil
?
I still maintain that my method is easier!
this is from bpp
50000 min 20000=30000 goes to goodwilland (5000) + 20000 =15000 goes to retained earnings.
my doubt is .it should be (5000)+(20000) =25000 which has to be taken to retained earnings under spiro.?
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