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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Group accounts

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.
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  • September 14, 2023 at 8:58 pm #692044
    Mbekekabrendah
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    P co acquired 80% of equity stock in s co for a consideration of 3,000,000 equity in S co through a share exchange of 1 for 2 . And by cash of 6000 per share acquired payable at the end of month
    At acquisition , the market value of Shares in p and s respectively was 4000 and 3780.
    P co cost of capital is 7%
    How can i get the cost of the investment?

    September 15, 2023 at 7:09 am #692058
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3396
    • ☆☆☆☆☆

    Use market price of parent’s shares at acquisition date, plus cash consideration.

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