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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?
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.