Hi Mike,
Thank you for the "FREE" lectures, they enable an extra 3 months prep - seriously appreciated!!
First - I fully appreciate and understand the NCI value of investment calc. i.e 40% x 80,000 shares x $1.65/share = $52,800
BUT
In your W2 answer to this example under FV "shares" they are valued at $1 i.e. the amount is $80k + $40k = $120k.
You have asked us to assume a price of $1.65 / share pre acq. Surely this $1.65 is the FV price? i.e. 80,000x $1.65 + $40k Ret Earns = $172k
Please explain what I'm not getting and how my logic is faulty on this?
Thanks again.
Marcus
[Moderated]
Marcus i moved this post to 'Ask the Tutor section' - higher chance that Mike Little will reply.
Seagoat
Ask the Tutor ACCA FR
F7, Chapter 7, Example 8
11y ago#1Thanks Seagoat! Marcus, if you want a reply from the tutor, we are continually looking at the "Ask the Tutor" page and rarely have time to check other pages
The shares have a face value of $1 and a market price of $1.65
Most shares in exam questions have a face value of $1 but we typically will need the market value for the purposes of valuing the nci
Is that ok?
Thank you Both.
11y ago#3You're welcome
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