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BPP Pages 272 assocate to subsidiary acquisition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › BPP Pages 272 assocate to subsidiary acquisition

  • This topic has 0 replies, 1 voice, and was last updated 7 years ago by yeeunlee.
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  • October 16, 2018 at 2:27 pm #478758
    yeeunlee
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    Hi sir
    I have a question regarding to calculation of gain on remeasurement

    Peace acquired 25% of Miel on 1 january 20X1 for january and a further 35% was acquired on 30 September 20X9

    So i calculated gain on remeaurement
    FV at date control achieved = 800 ^ 14.5 ^ 60% (20X2.sep 30)
    Carrying amount of investment = 2020 + (7800-2800) ^ 25%
    = 6960 -2520 = 4440

    But the answer was
    FV at date control achieved = 800 ^ 14.5 ^ 25 %
    Carrying amount of investment = 2020 + (7800-2800) ^ 25%
    = 2900-2520 = 380

    Im confusing why it is multiplied 25% not the 60% because the date that company got the control is 30 September 20X2 which is 60 % ..

    Can you please explain this..?

    Many thanks!

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