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FV of subsidiary’s net assets @ acquisition and reporting date

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › FV of subsidiary’s net assets @ acquisition and reporting date

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.
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  • April 3, 2021 at 1:51 am #615791
    Noah098
    • Topics: 936
    • Replies: 352
    • ☆☆☆☆☆

    sir my study text states that goodwill in the accounts of subsidiary will be deducted from FV of net assets at acquisition date and reporting date. Why so? Goodwill is an (intangible) asset, so then why deduct it? Net assets means adding all assets and deducting the liabilities.

    April 3, 2021 at 12:08 pm #615828
    Stephen Widberg
    Moderator
    • Topics: 10
    • Replies: 2531
    • ☆☆☆☆☆

    I have no idea – I’m sure it’s not in our study text!

    It makes no sense at all.

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