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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Chapter 7 example 8
In the Goodwill calculation why wasnt share premium of (80000 x 0.65) included when arriving at FV of SNA @DOA.
I am very uncertain as to why this is the case and would please like some clarity.
The Guido shares were issued, according to the question on page 38, at par with no share premium on that issue
The market value of $1.65 at date of acquisition is a market value – it’s nothing to do with Guido and Guido has absolutely NO control over that market value
If I sell my shares in Guido to you immediately before the Ivona takeover and you pay me $1.65 …. how does Guido reflect that transaction?
It doesn’t! That’s a private deal between you and me
OK?
thank you so much that clears up everything
You’re welcome