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I realise in the FV of net assets table in the question they have added the gain on investment for Strata.
And also in a previous question that i encountered in december 2013 qn on polestar the URP in subsidiary is being deducted from the FV of net assets.This is because the sale is from S to P right
But one of illustration question given by my lecturer also had a sale from subsidiary to parent but in the FV of net assets table, the URP in subsidiary wasn’t included.
Im confused. When do we have to account for all these items on the FV of net assets table ?
Personally, I don’t do a net assets table neither at date of acquisition nor at accounting reference date …. and I find my way much easier
However, you cannot be correct when you say that pup has not been deducted. The steps are simple… calculate the pup, determine which entity has recorded the sale and therefore has recognised the profit, deduct the pup from that entity’s retained earnings and deduct the same value from the combined asset figure
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