Consolidated Accounts 3 - Share for share exchange

Hi, I think that i understood it. The workings that you did is correct. In the example of Share exchange, you have calculated the value of P's shares, which is $6M. The reason why you debited the investment by that amount is because that's the consideration amount. The question did not include the consideration amount, it only specified the type of consideration made, and if that question would have included the consideration amount, it would be something like that, "P acquires 80% of 10M Ord $1 shares at a consideration of $6M where payment is made by offering a share exchange..." The question is only mentioning the different types of consideration that P is giving to the Subsidiary. P did acquire 80% of the 10M Ord $1 shares BUT at any moment did they mention the consideration amount. This is the purpose of the question,for us to calculate the consideration. I sincerely hope that i got this right. Else i might confuse this during the exams. Please confirm my understanding.

Hi, Yes, your understanding is correct. You just need to read each question very carefully. Thanks

Hi, Thanks a lot. Now i feel a little relieved. Continue the great work with the videos, they are very easy to understand and you have a unique way of not making the subject boring. Thanks again.

Thanks Nischaye, always great to hear positive comments about the work that we're doing here. Good luck with the studying and keep firing away with any questions that you may have. Thanks Chris