Fair Values

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March 4, 2018 at 5:26 pm #440142
mumbaikar
Participant
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Hi sir! I wanted to know why do we measure fair values of example inventory of an acquired business as inventory figures reported by the acquired entity could be used right?
The confusion is that main purpose of measuring FAIR VALUE
March 4, 2018 at 9:02 pm #440219
P2-D2
Keymaster
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Hi,

We need to have the most up to date values of all assets and liabilities on acquiring a subsidiary to accurately reflect what we are paying to acquire the subsidiary, so that it there is a difference then the goodwill figure is then accurate.

Thanks
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