I am sort of confused about your statement that 5 m depreciation goes for year 2015 in SPL. The depreciation of 5 m represents the cumulated depreciation. For the year 2015 in SPL there should be 1 m right?
actually, i agree with you, your method’s even more precise than the based on the equity interest one. the question is if the examiner does 馃檪 i’d better be on the safe side and do it his/her way in the exam room.
excuse me, are you sure that we can apply that kind of short-cut to forex gain/loss calculation on our initial investment? because thereby we assume that our share of goodwill initially was proportionate to the whole goodwill, which is not always the case. i believe, we should take only our share of forex gain/loss to the group retained earnings or group exchange reserve or whatever, according to the percentage of our equity interest.
anyway, thank you for your lectures, very helpful indeed!
adil88 says
Hi there, many thanks for the lecture.
I am sort of confused about your statement that 5 m depreciation goes for year 2015 in SPL.
The depreciation of 5 m represents the cumulated depreciation. For the year 2015 in SPL there should be 1 m right?
josy87 says
Brilliant lecture. Thx
P2-D2 says
Yes, it is accurate enough to avoid the additional complications if it were to be done in a more precise fashion.
Glad you’re finding the lectures helpful and that they help you get through the final exam.
Victoria says
actually, i agree with you, your method’s even more precise than the based on the equity interest one. the question is if the examiner does 馃檪
i’d better be on the safe side and do it his/her way in the exam room.
Victoria says
excuse me, are you sure that we can apply that kind of short-cut to forex gain/loss calculation on our initial investment? because thereby we assume that our share of goodwill initially was proportionate to the whole goodwill, which is not always the case. i believe, we should take only our share of forex gain/loss to the group retained earnings or group exchange reserve or whatever, according to the percentage of our equity interest.
anyway, thank you for your lectures, very helpful indeed!