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Net assets on acquisition include a £16mil increase in the fair value of land. When you made the acquisition and revalued the land for the purposes of calculating goodwill the new value of the land is consolidated as part of your PPE figure in your group financial statements. In the individual financial statements, why would you not revalue the land at the same time ie increase the carrying value of the asset by £16m?
On top of this, why does the land only have a useful life of 8 years? I thought the general rule was that we do not need to depreciate land as it is not ordinarily deemed to have a finite useful life.
Sorry if I am missing the point!
Many thanks,
Sam
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