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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Chapter 4 example 2
Hello, I was wondering how they got the “(80)” depreciation used in (W2) Net assets of subsidiary workings, in the answer at the back.
Hi,
The fair value adjustment is 400 which is then depreciated over 10 years from the date of acquisition to the reporting date. The annual depreciation is therefore 40 and given the subsidiary was acquired two years ago gives us a total of 80.
Thanks
Thank you.
How did they get the fair value adjustment figure of 400 please?
Or is it a balancing figure? The “excess” they talked about.
Hi,
Have you watched the video? The answers is contained in there.
Thanks
