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For 60% yes – I put 35m consideration as highest and best use (but i did did not make adj in ppe for that). On top of that you had to include fv of 10% of investment they had.
You had to remeasure the property to FV less cost to sell and it should be presented as HFS for YE (it was sold after the year end closing). 0.3 was the diff between CA and FVLCTS. It met HFS criteria before YEC so i think it should be adjusted.
Also since another property was used as a consideration for 60% it should still be consolidated in group SOFP.@Maria2311 – I agree – I think it should be OCE (I made it to RE and I also recycled only the difference between current value and FV (so I did not include the change from the moment when they purchased 10%). What other adjustments you made in spreadsheet? GW, NCI, NCAHFS, IA, RE, OCE? Anything else?
I spent also a bit too much time on Q1. Maybe you are right with that FV! I do not really remember all the questions from the exam – so about such details I forgot once I moved to next question.
I adjusted it by 0.6 (I think BV was 3 and FV was 3.6). They probably do not intend to use it and they won’t sell it either, my understanding is that there needs to be FV of an item in GW calculation thus I made an adjustment and recognized 0.6 in Intangible Assets on top.
But definitely I made a mistake with derecognition of 10% investment – I recognized the gain in RE and I think it should be OCE as this was FVTOCI investment.
Can you confirm if except for Q1 you made any calculations in the rest of your exam? I used spreadsheet in Q1 only and the rest was I believe purely ‘discuss or explain’ questions. But that exam was so tricky so I started questioning myself if I understood what I have been asked for 🙂
