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The FV of subsidiary’s financial asset equity investments, carried at a value of $6m, was $7m.
subsidiary owned the rights to a popular mobile phone game. at the date of acquisition, a specialist valuer estimated that the right were worth $12m and had estimated remaining life of 5 years.
At 30th june 2015, the FV of the financial asset equity investments of Parent & subsidiary were $13.2m & $7.9m respectively.
my query is when there is $7 at acqn of FA and year end $7.9 cant we directly post to the net asset of sub calculation as FV adjustment $7 at acqn & at csfp $7.9 this gives?,
please make me clear so confused with FV adjustment
Hi,
Yes, there would be a FV uplift of $1m at acquisition for the investment. Also $12m is included for the intangible at the same date.
At the reporting date, then there is $1.9m (7.9 – 7) for the investment and $7.9m for the intangible.
Hope that clears it up for you.
Thanks
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