- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
- Posts
Hello sir
In the question grange..
In the net assets list of the sub fence,
I did not understand as to why 4 is added to the fair value of net assets at doa ( 202+4)
In my answer,
The fv of net assets at doa was 202
And the 4 which is the excess was the fair value
I did not understand why the 4 is added to 202
In other questions for fv adjustment.. the excess figure ( the difference between book value and fair value is the fv adjustment)
So i am not sure if i have misunderstood the meaning of the sentence
ThankyouHi,
It is because the $202 million was a provisional amount at the acquisition date and it was subsequently found that an item of PPE had a fair value of $4 million more. As this was within a year of the acquisition date then it is adjusted in the net assets at the date of acquisition.
Thanks
- You must be logged in to reply to this topic.