- This topic has 1 reply, 2 voices, and was last updated 4 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Dear Tutor,
could you please help me with the following answer on Gain on Investment, (Marchant):
A fair value gain has been recorded on the investment in Nathan of $95m – $90m = $5m. This gain must be eliminated on consolidation because the calculation of goodwill is based on the fair value of the consideration at the date of acquisition, not at the date of the current financial statements. The double entry for the reversal is:
DEBIT Other comprehensive income $5m
CREDIT Investment in Nathan. $5mHowever, the FV of consideration paid at acquisition was 80m 2 years ago. shouldn’t the revsersal be 15m?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.