Hi there,
Should the net asset at acquisition amount used in the Goodwill calculation not be Book Value (BV), rather than FV? (page 103 of notes)
Many thanks,
Navid
Ask the Tutor ACCA FR
Financial Reporting - Goodwill Calculation
3y ago#1Hi,
No, on consolidation we include the assets and liabilities at FV as this then reflects more accurately what has been paid to acquire the subsidiary.
Thanks
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