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Aayush98
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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
Aayush98
- Topics: 17
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Hi,
Kindly advise on the question above.
Thank you.
Aayush Shah
P2-D2
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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
Aayush98
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