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hi tutor,
in the goodwill calculation, the building adjustment been made to increase at $40, could you explain this?
My understanding is it need to be deducted instead of increased as it was included extra by $40 in goodwill calculation
Thank you1
Hi tutor,
It is in the new version of BPP exam kit Mock Exam1.
Alternatively, it is also in Dec 14 past paper Q1, where in W1 there is an add back of $40mTHanks
Hi,
OK, found the question. This is a measurement period adjustment and because it has taken place within 12 months of the acquisition date then we adjust the goodwill on acquisition figure.
Here the net assets will be reduced and therefore goodwill be increased by the same amount.
Thanks
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