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In the debrief video, March/June 2020, for the Hummings co ques, we are supposed to find how Cotchet Co’s customer contract will be accounted for in Hummings Co Statements. Isn’t this the case of group accounts and according to rule we should only translate assets at CR but in the ans why are we calculation on transaction day at that rate and then translating again at CR like we would in individual accounts?
As I think I said before, please give enough detail, in your own words, so that users and I don’t have to try and dig out the original question.
At the date of acquisition, contracts would be accounted for at HR in order to measure goodwill.
At the SFP date, contracts would be accounted for at the closing rate.
Yes my apologies, the ques was really big and I did not know which part to put in here exactly. I will definitely keep it in mind to make sure to put in enough details. Also, thank you Mr. Widberg for clarifying my doubt, it really helps me study well.
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