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Why adjustment is made in the value of investment of the nci on the S’s shares ?
I thought we make the changes in fv of sna @ doa?
Im sorry i dont know how to put it in words. You have to refer to the mini exercise sir. Im so so sorry.
(English is not my 1st language) :pMini exercise on goodwill, its in the opentuition notes.
But i understand it now. I think. Hehe
Its an option on how to calculate the nci cost of investment, either fair value or share of net asset. So , when market price of S’s share before acquisition is given in the question, it is calculated using the fair value option.
Correct me if im wrong 😉
Yes, but the examiner will say something like “the directors of the parent value the nci on a full, fair value basis. For these purposes, the value of the shares in the subsidiary shall be taken to be the fair value”
OK?
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