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Sir,
according to the course notes illustration for share for share basis transaction, we take the value of the total consideration of equity share part without the premium {in the eg, we take 6000 and not the premium value of 33,000.is what I meant to say}
but in a BPP revision kit question they are including the value of the premium in order to reach the consideration
Kindly specify which is the actual treatment and why?You are kidding me aren’t you!
Sadly, I don’t understand the joke – is it some sort of modern humour?
Go on, tell me the punch line
Because I can see at the foot of page 53 these words:
“therefore, the value of the shares we issued to acquire 90% of Greca was
6,000 × $1 nominal value of share capital 6,000
6,000 × $5.50 share premium 33,000OK, that’s the share for share element sorted out”
and I can see at the top of page 54 these words:
“therefore total consideration for the acquisition is:
$1 equity shares 6,000
share premium 33,000
deferred cash payment 14,400”But go on, tell me the joke
🙂
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