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Hi,
If FV of associate is higher on acquisition. Do you only account for additional depreciation in group SFP, or do you account for both the additional depreciation and the higher valuation?
Thanks
Unclear about your question.
Associates are equity accounted.
Not sure what you mean about the extra depreciation.
sorry, missed a word
If FV of PPE of associate is higher on acquisition. Do you only account for additional depreciation in group SFP, or do you account for both the additional depreciation and the higher valuation?For the exam – cost + % post acq profits
I think you are thinking about implicit goodwill – yes it would cause additional depreciation. See implicit goodwill in:
https://www.iasplus.com/en/standards/ias/ias28
But the exam will be straightforward 🙂
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