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tds11 says

In question 1, can you please explain how you calculate the initial 1’200’000? (I guess it’s the number of shares)

Thank you in advance

gorikrish says

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?

gorikrish says

in question 1, can you please explain the fair value adjustment calculation ?

P2-D2 says

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

gorikrish says

Thank you!

hodge says

Hi there,

Please can you explain for Question 3 where the 20,000 that is multiplied by 25% comes from?