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the last line of a question is “the shares and deferred consideration have not yet been recorded”
so i did all the calculations and upon consolidation, i added the non current liability for the deferred consideration …. and it it turns out that the answer simply added the NCL given on the respective SOFPs and the pv of the def consideration and the unwound interest were not added.
my question is why is not the deferred stuff being added?
because in a previous question it said “only cash paid in respect of invesntment has been recorded”
and in this question, the PV of the def consideration and the interest unwound was added.
i think i may be missing something obvious … if not… i will reproduce the question
thanks
pls Semi ignore the above post.
in the answer, there is a line below ‘current liabilities’ with a heading “deferred consideration”
so.. that means that this is now a current liability? correct?
the acquisition took place 2 years ago .. it says in the question. and the sofp given shows the date as 31 dec x4.
so that means the acq. took place 1 jan x3… correct?
if yes, this means that we still have one year to go before the def consideration is paid. correct?
if yes, that means that on 31 dec x5, the entire 500 will be due (500 was the def consideration to be paid in 3 years). correct?
(i think this has turned out to be an F3 question..:))
I love it when students ask questions and then, half way through, they start to answer those questions!
Are you sure that you’re ok now?
am glad that is settled….
but i do have a problem with bifurcating AMOUNTS BETWEEN NCL and CL.
I have a problem with bifurcating! That’s got to be the first time that particular word has appeared on opentuition!
ha ha .. thats what u get when a non-accountant starts to learn accounting
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