Hi Mike,
For question 1b) prepare the consolidated statement of financial position for premier, may I know for working part iii) under goodwill, why is the asset(equity) of Stanford at September 2010 (9500), should it be 5000 based on the shares or at least a positive 9500?
Ask the Tutor ACCA FR
F7 2010 Dec paper, question 1
10y ago#1Hi
It IS positive! It's shown in brackets because it's being deducted from the combined value of the consideration and the nci
The two figures below 9,500 are this year's profits since acquisition and the fair value adjustment where the asset has a fair value lower than the carrying value. These two figures are deducted
Personally, I always show the assets at date of acquisition as a positive and then, having added up that inset column, I deduct the total from the consideration and nci total
OK?
Hi Mike,
Thank you so much!
10y ago#3You're welcome
Sign into reply to this topic.