Hi mike thank you for been here
Exam paper September /December 2016 Q1, The fair value of Palistar and Stretcher’s shares on1 January 2015 were $4·00 and $3·00 respectively. In addition to the share exchange
I do not understand why the share value for goodwill is 4.00 instead of 3.00
75%of 20000=15000/5x2=6000x4.00
also Following an impairment review, consolidated goodwill is to be written down by $3 million as at 30 June 2015
the impairment goodwill of 3million is calculated in stretcher Consolidated retained earnings, why calculated in stretcher retained rather than the parent company
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F7 PASS EXAM PAPER
September /December 2016 Q3a
9y ago#2Because we are issuing 2 shares in Palister worth $4.00 each for every 5 shares acquired in Stretcher
Personally I would have adjusted consolidated retained earnings by just Palister's share of that goodwill impairment and taken the nci share into working W4A as part of the calculation of the nci
But if you take the full $3m off Stretcher's profits, and then take just Palister's share of those retained earnings, that works out to be the same
Now then, I have a question for you! Not only do I not know whether this is question 1 or question 3 that you are asking about but I am totally intrigued how you know what is in next December's exam.
Do you also know the contents of September 2016 exam? That could make you a fortune and can you also let me know the winning lottery numbers for next week's draw in the UK?
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