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hi sir my problem is note(i) regarding the investment in Hail,why was it reversed to $50m and why was there a CR to the investment in Hail of $50m
also note (iii)i dont understand how trade receivables,payables,finance expenese were calculated
note (vi) why was the $16m recorded as a current liability
The double entry on acquisition appears to have been Dr Investment in Hail 55m, Cr Cash 50m and Cr OCI 5m.
The entry should have been Dr Cost of Investment, Cr Cash
To reverse the bad element, we need to Dr OCI and Cr Cost of Investment with the excess 5m
OK?
Thank you..how long has the current p2 examiner been setting the paper?the reason i ask is because i was trying to do a question from june 2005,but it was very hard and the structure was different too
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