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Chapter 4 example 2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Chapter 4 example 2

  • This topic has 5 replies, 2 voices, and was last updated 8 years ago by P2-D2.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • July 6, 2017 at 10:05 pm #394895
    anazoric
    Participant
    • Topics: 36
    • Replies: 59
    • ☆☆

    Hello, I was wondering how they got the “(80)” depreciation used in (W2) Net assets of subsidiary workings, in the answer at the back.

    July 7, 2017 at 9:26 am #394936
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    The fair value adjustment is 400 which is then depreciated over 10 years from the date of acquisition to the reporting date. The annual depreciation is therefore 40 and given the subsidiary was acquired two years ago gives us a total of 80.

    Thanks

    July 13, 2017 at 10:03 am #395719
    anazoric
    Participant
    • Topics: 36
    • Replies: 59
    • ☆☆

    Thank you.

    July 13, 2017 at 10:15 am #395721
    anazoric
    Participant
    • Topics: 36
    • Replies: 59
    • ☆☆

    How did they get the fair value adjustment figure of 400 please?

    July 13, 2017 at 10:18 am #395722
    anazoric
    Participant
    • Topics: 36
    • Replies: 59
    • ☆☆

    Or is it a balancing figure? The “excess” they talked about.

    July 14, 2017 at 7:59 am #395866
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    Have you watched the video? The answers is contained in there.

    Thanks

  • Author
    Posts
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