- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
- Posts
I noticed that when you are calculating fv of SNA @ date of acq, you add the RE at the reporting date with the pre acq month of the profit for the year together in the example of Roberta ex 10.
Kaplan will Net asset( pre acq bal ) is calculated this way
RE @ acq’n ( balance)…….. bal figure
Post -acq profit……………… post acq month
RE @ reporting year end …..Meaning getting the pre- acquisition RE = Reporitng RE for the year end minus the post acq month profit for year End
So, I don’t get the right Goodwin using same method
Assume that the brought forward figure is $80,000 and the retained earnings for the year are $24,000
Therefore closing retained earnings are $104,000
The acquisition is on 1 May, 2016 and the accounting year end is 30 November
My method takes:
Retained earnings brought forward $80,000
Retained earnings for 5 months 1 December – 30 April $10,000
Retained earnings as at date of acquisition $90,000
Kaplan’s method:
Retained earnings at year end $104,000
Less post-acquisition retained earnings 7 months 1 May – 30 November $14,000
Retained earnings as at date of acquisition $90,000
What’s the problem?
- The topic ‘Fv of sna@doa’ is closed to new replies.