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ok.. this is loud thinking.
the question is to calculate the goodwill and then the csopl. it is mid year acquisition
i did everything right except…..
the scenario said “…S’s reserves at 1 Apr 07 were 69 million..”
when i read that, i somehow thought that this will include the share capital also. and my net assets computation did not include the equity… 🙁
reserves will always refer to items other than equity?
Yes – but be careful because sometimes a question will tell you what the “net assets at date of acquisition” were and that figure DOES include the share capital
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