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ques: at date of acqn the FV of Subsidiary’s asset & liabilities were equal to their carrying amount with the exception of its property which had FV of $4 million. This led to increase in depreciation charges in post acqn period 30.09.2014. this has not incorporated in the FV property increase into its Financial statetmens.
On 30th sep 2014 increase in parent’s property has already been recorded however further increase of $600 in the property of subsidiary since its value at acquisition & 30.09.2014 has not been recorded.
as we have to calculate net asset of subsidiary at acquisition, i adjusted $600 it as FV of property.
So, i couldnot understand why it was mistake to adjust it in the net asset of Sub? confused totally
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