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Hi Mike,
Acquisition date= 1 January 2014
Reporting date = 30 September 2014“The policy of the plastik group is to revalue all properties to fair value at each year end. On 30 sept 2014, the increase in PLASTIK property has already been recorded, however, a further increase of $600,000 in the value of SUBTRAK’s property since its value at acquisition and 30 Sept 2014 has not been recorded.”
My question is: why wasn’t the fair value adjustment of $600,000 included in the retained earnings calculation, but yet, was included in the calculation of NCI at reporting date (reflected on the SoFP)?
Sorry, did I miss out on any details yet again?
Without looking at the question, I imagine that the increase is reflected in a revaluation reserve rather than within retained earnings
Does that explain it?
If not, post again and I’ll look at the question again
You are right, I really should be extra careful when answering questions now 🙂 thanks again!
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