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For this Salt part,
Ques as per below: –
Bubble acquired 80% of the equity shares of Salt on 1 November 2013 when Salt’s retained earnings were $56 million and other components of equity were $8 million. The fair value of the net assets of Salt was $120 million at the date of acquisition. This does not include a contingent liability which was disclosed in Salt’s financial statements as a possible obligation of $5 million. The fair value of the obligation was assessed as
$1 million at the date of acquisition and remained unsettled as at 31 October 2015. $5 million is still disclosed as a possible obligation with no change in its fair value. Any remaining difference in the fair value of the net assets at acquisition relates to non-depreciable land. The fair value of the non-controlling interest at acquisition
was estimated as $25 million. Bubble always adopts the full goodwill method under IFRS 3 Business Combinations.May i know what is the answer for FV of Net asset at acquisition and FV of Net asset at reporting date?
Thanks
Hi,
It specifically says in the question that the net assets at acquisition are $120 million. To get the net assets at the reporting date then you need to use the equity section of the subsidiary and any fair value adjustments.
Given how important this is in any groups questions, you really need to ensure that you can find these figures easily. It will be in virtually every exam!
Thanks
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