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BPP Revision Kit – 288 Prodigal Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › BPP Revision Kit – 288 Prodigal Co

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  • August 19, 2018 at 7:09 pm #468546
    delamanisp
    Member
    • Topics: 9
    • Replies: 48
    • ☆☆

    Hello sir,

    I have a question regarding the calculation of the Goodwill on acquisition on the 288 Prodigal Co exercise on BPPs revision kit.

    I correctly calculated the consideration transferred and started calculating the net assets. However, I am slightly confused as the solution does not include the Fair value adjustment on the plant transfer.

    Can you please explain why it is not included?

    Thank you!

    August 27, 2018 at 8:36 pm #469710
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7034
    • ☆☆☆☆☆

    Hi,

    The transfer of plant is not included as it did not take place on the acquisition date, it took place after the acquisition date. Any adjustments therefore relate to the post acquisition period.

    Thanks

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