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June 2016 consolidation question
note 4 )
the financial asset equity investment of Zanda co and Medda Co are carried at their fair value at 1 april 2015.at 31 march 2016 these had fair value of $6.1 million and $1.8 million respectively,with the change in Medda co investment all occurring since the acquisition on 1 oct 2015
1) why didn’t we include the change in fair value of subsidiaries equity investmen in calculation of consolidated goodwill??????
2) How should i treat this note when,suppose parent acquired subsidiary company in 1 april 2015 instead of 1 oct 2015 (year end 31 march 2016)???????
1) why didn’t we include the change in fair value of subsidiaries equity investmen in calculation of consolidated goodwill??????
Because the question tells us that the change in fair value is AFTER the date of acquisition
2) How should i treat this note when,suppose parent acquired subsidiary company in 1 april 2015 instead of 1 oct 2015 (year end 31 march 2016)???????
Just the same – the change in fair value is still AFTER acquisition
Sir, acquisition was at 01 oct 2015,but financial equity investment was valued at 01 april 2015
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