When working out the consideration for Zinc, why was an increase in fair value of $1m included to work out the investment figure and how was that figure calculated?
Ask the Tutor ACCA SBR
June 2012 Section A Q1a
10y ago#1Hi,
It's a bit of an odd one and one that we've not seen again since thankfully. The $1 million comes from the difference between the total of $18 million consideration and the $19 million recorded in the SFP.
Personally, I'd have included the $16 million and then added the fair value of the previously held 5% investment at $5 million, to give the total of $21 million that is in the answer.
Thanks
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