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September 16, 2020 at 5:46 pm
Hi Mr. John
In example 3; why we are taking fair value adjustments while preparing consolidated statement. Since the “S” was acquired in 2005 and we are preparing consolidated statement in 2009, there are 5 years in between (including both years). So, “S” would have added the revaluation impact in its books anytime in between these years since the revaluation was carried out on or before acquisition. In that case we simply would have been adding up fixed asset amounts appearing in both the companies statement. This example shows that “S” has not added the revaluation impact, how “S” could do that? How revaluation impact left remain un-adjusted for number of years? does it happen in real life?
John Moffat says
September 17, 2020 at 11:00 am
There is no requirement for S to revalue. Most companies do not revalue their assets.
February 8, 2020 at 10:11 pm
Excellent lecture. Everything was laid out so clearly that I was able to complete Example 4 without help and got it all right
September 18, 2019 at 9:20 pm
Amazing Lecture at a great pace. Enjoyed it thoroughly. Great Talented Teacher. 🙂
September 19, 2019 at 7:56 am
Thank you for your comment 🙂
December 24, 2018 at 11:28 am
Sir i wanted to ask do we take profit after tax as retained earnings, and if we do, should we take the post or pre acquisition?
December 25, 2018 at 9:47 am
The post-acquisition profits after tax.
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