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Hello Sir,
When working out the NCI, post acquisition reserves, we take the total assets as 39750 dinars and fair value of 3200 Dinar( 4000-800 ). as 800 is the depreciation.
Why is depreciation taken for 2 years and not 3. the fair value on 1st jan 20×6 was 4000 with a useful life of 10 years and we are reporting on 31st dec 2018.
isnt it suppose to be 1200 because its 3 years.
having doubt if im doing something wrong here..
looking forward to your reply.
Thanks
Manan.
Hi,
Sorry, looks like I can’t count correctly and it should be three years.
Thanks
Dear Sir,
There’s also a question on this Example 5 about the exchange diff on translation of a foreign Sub.In the answers in the Notes the change is $1265 (477 OpNA+31 Profit+757GW).
477+31=508. However, as you confirm it’s been 3 yrs instead of 2 yrs, then the amount of 508 is wrong?Please, look at my calculation:
Opening NA: 39750 – 25200 + 2800 – 1100 = 16250/3,9 = $4166
Profit: 2300 – 1200 = 1100/3.6 = $305
Closing NA: 39750 – 25200 + 2800 = 17350/3,4= $5103
The diff is 632 (instead of 508 from the answers).Is it correct, Sir?
Thank you very much in advance!
Looking forward to you answer!
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