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Thank you. My apologies i did not notice that i asked under MA. I am studying for paper AFM former P4.
Hi
Pliz explain to me the second part of qstn (a). I thought the sensitivity was the issue of NPV/PV of initial capex but seems am totally lost what is the question requiring and which way are they answering.also i got my NPV correct but through initially finding the profit before tax abd adding back the figures as given in qstn then later deducting tax.will that give the score or it has to be done as they did in the answerHi.i was attempting this question and it got me confused.i thought when adjusting post tax earnings we remove one off items but it seems the value of redundancy costs was not factored.may u help me understand.is it a wrong answer if i had considered my EPS value as 7.33/60 & got 12,22 cents
So on the treatment of them being deducted before tax and added back after tax computation and the other one of factoring them only after tax as tax savings, are the both methods correct despite them giving different answers or maybe i simply have to stick to their treatment of being added back. Reference question is Jato question from lsbf study kit topic 2.
hi.
May you please explain to me more on valuation of subsidiary’s net assets in business combinations .i’ve met a question like thisP purchased 60% of the shares of S on 1 January 20X1. At the acquisition date, S had share capital of $10,000 and retained earnings of $190,000.
The property, plant and equipment of S includes land with a carrying value of $10,000 but a fair value of $50,000.
Included within the intangible assets of S is goodwill of $20,000 which arose on the purchase of the trade and assets of a sole trader business. S has an internally generated brand that is not recognized (in accordance with IAS 38). The directors of P believe that this brand has a fair value of $150,000.in the solution they added the brand’s fair value so my question is why??