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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Example 2 – Group SFP incl. Associate – Chapter 25
Hi,
I was working through this example 2 and in the answer in the notes on page 167 of the notes, I have seen the FV is 400. I am unable to get this figure since my calculation is $1850m FV of net assets – $1800 (Net assets according to draft financials) = $50m as the FV with a extra depreciation of $50m/10 years remaining useful life = $5m.
The answers suggest $400m for FV and $80m for extra depreciation.
Kindly note this affects all other workings and hence need further clarification on the same.
Please confirm why the figures are not $50m for FV – PPE and not $5m for Depreciation in the answer.
Waiting to hear from you soon.
Kind regards,
Aayush Shah
Hi,
Kindly advise on the question above.
Thank you.
Aayush Shah
Hi,
If the FV of net assets is $1,850 million at acquisition and the equity share capital is $1,000 million and the retained earnings $450 million then the difference is $400 million – 1,000 + 450 +400 = 1,850
Thanks