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Financial Reporting – Goodwill Calculation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Financial Reporting – Goodwill Calculation

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  • November 16, 2022 at 11:53 am #671606
    navidmodhej
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    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

    November 17, 2022 at 8:49 pm #671758
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6440
    • ☆☆☆☆☆

    Hi,

    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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