- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi Sir,
let’s say,
P acquired 60% of S equity on 1 Jan 20X1.
On Date of Acquisition, the inventory of $800,000 had fair value of $1M, and had been sold during the year end 31 Dec 20X1.I wonder, on Date of Acquisition, the S net asset will increase by $200,000 right, so what about at the reporting date (31-Dec-20X1) as it’s all been sold??
So there will be no adjustment to the fair value of the assets as at reporting date.
Why?
Because it’s all been sold – like you said
The effect of that ‘wrong’ original valuation has been automatically dealt with within the cost of sales calculation. So long as inventory as at 31 December, 2015 is correctly valued there’s no further adjustment necessary
OK?
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Fair Value Adjustment’ is closed to new replies.