ACCA FR Practice Questions ACCA FR Lectures
Technical Problems
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Normally , the fair value of NCI is given in the question.Is there any other way in which NCI value will be asked like the one in q.1?
in question 1, can you please explain the fair value adjustment calculation ?
Hi,
The fair value at acquisition is the uplift of $2.4 million on the PPE(building). In the post acquisition period this will need to be depreciated over 8 years, so $2.4m/8years = $0.3m per annum. The acquisition date is 31 August 2014 and the reporting date 31 December 2014, so we need 4 months of depreciation as $0.1m ($0.3m x 4/12, or $0.3m/3, being the one third of the year).
Hope that clears it up.
Thanks
Thank you!