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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Cost of Investment in Consolidation
On 1 January 2017, Danso Ltd acquired 75% of Zumah Ltd’s equity shares by means of a share exchange of two shares in Danso Ltd for every three Zumah Ltd shares acquired. On that date, further consideration was also issued to the shareholders of Zumah Ltd in the form of a GHS100 8% loan note for every 100 shares acquired in Zumah Ltd. None of the purchase consideration, nor the outstanding interest on the loan notes at 31 March 2017, has yet been recorded by Danso Ltd. At the date of acquisition, the share price of Danso Ltd and Zumah Ltd is GHS3·20 and GHS1·80 respectively.
Please help me calculate the total consideration
Have they given a solution for this?
If so, what is it?
Just to make one thing clear though, such type of a question won’t get tested.
Like it can be tested where we have multiple considerations but NOT this one.