[anshika1415]

Thanks a lot Mr. Moffat for your precious guidance and this amazing platform, it really helps a lot I only take lectures from opentution and it has helped me a lot in clearing my examinations.
This attempt it was PM for me, cleared it in the first attempt.

[anshika1415]

passed with 72%

[anshika1415]

my doubt is regarding proportionate method why are we taking net assets at reporting date , why not net assets at acquisition. and furthermore do we take post acq. profit share if we are taking net assets at reporting date
because when i was reading kaplan book i gone through the workings given in book there they mentioned under proportionate share of net assets method , they took net assets at acquisition. on pg-441
as per kaplan book workings .
under (W4) NCI
they mentioned whatever amount is taken in (W3) Goodwill as NCI value same should be taken .
please go through workings in kaplan book then you will understand my problem.

[anshika1415]

i got it thanks

[anshika1415]

in this part of question the carrying amount of building is 4500000 where as the revalued amount is 5400000 so the difference is 900000 which is a revaluation gain ,but on revaluation of an asset the amount of depreciation also increases therefore the increased amount of dep. that is (120000-100000) 20000 will be adjusted from revaluation gain and also 20000 will be transferred to retained earnings so the amount transferred to revaluation surplus will be 900000-20000 AND 20000 will be added to retained earnings .
Whereas, when it comes to land , land always appreciates and here it is too!

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