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Acquisition achieved on stages

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Acquisition achieved on stages

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.
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  • November 3, 2013 at 12:08 pm #144432
    d245
    Member
    • Topics: 56
    • Replies: 38
    • ☆☆

    consolidation acquisition achieved at stages . “Associate turned into subsidary.”
    e.g 1 jan 01 25 % holding 2020,000 purchase consideration ,company reserve 58oo,ooo.
    at 31 dec 01 the fair value of 25 % was 2440,000 .
    further 35% holding purchased on 30 sep 02 for 4025,000(the FV of $14.375 per share acquired on that date), company reserve 7800,000.
    what will be the calculation of profit on derecognition of investment?

    November 6, 2013 at 5:02 pm #144790
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23336
    • ☆☆☆☆☆

    If I can understand your figures, it looks like number of shares representing 25% multiplied by $14.375 minus $2,020,000

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