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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › a little case
Q?Kutchen had purchased an 80% interest in Niche for $40 million on 1 April 2014 when the fair value of the identifiable net assets was $44 million. The partial goodwill method had been used to calculate goodwill and an impairment of $2 million had arisen in the year ended 31 March 2015. There were no other impairment charges or items requiring reclassification. The holding in Niche was sold for $50 million on 31 March 2015 and the
gain on sale in Kutchen’s financial statements is currently recorded in other components of equity. The carrying value of Niche’s identifiable net assets other than goodwill was $60 million at the date of sale. Kutchen had carried the investment in Niche at cost
A?Why ‘Profit reported in OCE to be transferred to retained earning’ have to exclude the post-acqusition profit?
Hi,
I’m really not sure what you’re asking. If you explain it in a bit more detail then I’ll be able to help.
Thanks