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March 2025 ACCA Exams

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      • hello sir i have a problem in this question why 10m of amotisation add back in subsidary net assets in post retain earnings..??

      • I have a copy of Highveldt in front of me … and I see no sign whatsoever of a $10 million add back neither pre- nor post-acquisition

        ?

      • OK

        $18 million had been capitalised as at date of acquisition

        As at reporting date there was $40 million capitalised, net of the $10 million that had been expensed

        None of the $50 million should have been capitalised – it should all have been expensed as incurred according to Highveldt

        So net assets as at date of acquisition are overstated by $18 million and, as at reporting date, they are overstated by $40 million

        I have the Kaplan version of the answer and I don’t see any add-back of $10 million

        What I DO see is a deduction of $40 million – I suppose that this may be what you are looking at ie why is this $40 million and not $50 million

        I believe that I have just explained why it is what it is

        OK?

  4. Thank you so much. Kindly try and check the figures for the NCI and Impairment loss, it could be confusing though because the right figures were not used hence the answer is different from the revision kit. Thank you

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