Inventory fair value adjustments in mid-year acquisition

Hi Gus, The depreciation is an annual charge and so if there is a mid-year acquisition then we can only charge the amount related to the period from when we had control. So, in this instance we need to pro-rate by the 9/12. The inventory is telling us the value at one point in time (at acquisition) and the reporting date, which is what happened in the 9-month period. Given this then there is no requirement to pro-rate the figures. Any figures given from the subsidiary accounts will not have group adjustment put through and so the TCI figure does not already include the FV adjustments. Thanks