with reference to part (a)
the value of outstanding loans of 52.1 has been deducted from the adjusted present value in order to arrive at the value of the company oberberg to be aquired.
the reason for the loan deduction is due to the company is aquired through 100 % of equity , am i right ??
Ask the Tutor ACCA AFM
Intergrand (SFM, DEC 02)
7y ago#1No you are not right. They are buying the equity of Oberberg, and therefore they deduct the loans from the total value of Oberberg.
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