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June 2012 Section A Q1a

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › June 2012 Section A Q1a

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.
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  • May 15, 2016 at 9:19 pm #315238
    Leonard
    Member
    • Topics: 3
    • Replies: 0
    • ☆

    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?

    May 22, 2016 at 1:12 pm #316389
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7141
    • ☆☆☆☆☆

    Hi,

    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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