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Exchange difference on Goodwill

KKyler9y ago
Hi Sir Chris! I was just wondering why the calculation for exchange difference is different between Sept/Dec 2015 and June 2011 examination as shown below... When I use the June 2011 style to Sept/dec 2015, i get a different answer for exchange difference. I tried to fix the format but it just would not show when posted... Hope to hear from you soon. Thanks. Sept/ Dec 2015 (Loss on Exchange Difference) Goodwill Dinars Ex-rates $ Consideration 368 FV NCI 220 NA at Aquisition (468) ______ 120 DOA 8 15 Impairment (120)(20%)= (24) Avg 8.5 2.8 ______ 96 DOC 9.5 10.1 Exchange difference (12.2-10.1)= 2.1 Impairment Loss = 2.8 June 2011 Goodwill Dinars Ex-rates $ Consideration 276 FV NCI 250 NA at aquisition (495) _______ 31 Exchange difference on Goodwill Consideration 276 NA at aquisition (495)(52%)= 257.4 _______ 18.6 18.6 @DOA rate 6 = 3.1 18.6 @DOC rate 5 = 3.72 ______ Exchange difference gain= .62
P2-D2P2-D2Tutor9y ago#1
Hi, It is because in the latter exam there is an impairment and the goodwill is calculated differently in each question. One uses fair value, whilst the other uses the proportionate share of net assets method. Thanks
KKyler9y ago#2
Thanks Sir Chris! :)
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