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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.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.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!
