Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Fair Value adjustments
- This topic has 3 replies, 2 voices, and was last updated 13 years ago by MikeLittle.
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- November 11, 2010 at 4:15 pm #45778
Hi, can anyone plz help me with this confusion? Thanks,
In the OT notes and lectures I learned to adjust the F.V of the assets in working for Goodwill and also in the working to retained earning (minus any excess depreciation).
But in the bpp book the answers I checked had it different.
They had only deducted the excess depreciation from the retained earnings calculation and didn’t add the F.V increase.
Which way is correct?November 12, 2010 at 11:19 am #70177Hi – both ways are correct! It’s just that following my method, it makes the calculation of the nci just a bit clearer. If you look at OT’s way, the same figure is added into the retained earnings NOW and the ret ears at date of acquisition calculation but then too is the additional depreciation deducted from the ret ears NOW.
By doing it this way, it’s then easier to see the nci fv net assets as at date of consolidation.
BPP only adjust ( for ret ears ) the depn on the fv adjustment.
November 12, 2010 at 5:46 pm #70178Thanks!!!
Last time I used your lectures (in F4) I was shocked (with happiness of course) at the results. I hope I go through this time as well.November 18, 2010 at 3:03 pm #70179I hope you are equally shocked with your F7 result!
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