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Goodwill

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Goodwill

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • November 15, 2020 at 3:10 pm #595111
    grapes799
    Member
    • Topics: 19
    • Replies: 7
    • ☆

    Kaplan qst joey …..aquisition of margy

    In this qst they told that they have not included fv of building in the identifiable net asset. So when calculating goodwill we have to add the building fv of 140 so total of 2410 of identifiable net asset. But in the answer they are deducting it.can you please explain how it happen?

    November 17, 2020 at 9:52 am #595280
    Stephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3444
    • ☆☆☆☆☆

    The original FV adjustment is irrelevant.

    What is relevant is the 40 downward valuation – remember that FV can be and often are changed in the first 12 months of the acquisition of a subsidiary.

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