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need help with Note 1 – Paradigm Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › need help with Note 1 – Paradigm Co

  • This topic has 0 replies, 1 voice, and was last updated 9 months ago by acca2021yasemin.
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  • September 25, 2021 at 11:22 am #636468
    acca2021yasemin
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    297 Paradigm Co

    (i) At the date of acquisition, Strata Co-produced a draft statement of profit or loss which showed it had made a net loss for the year of $2 million at that date. Paradigm Co accepted this figure as the basis for calculating the pre-and post-acquisition split of Strata Co’s profit for the year ended 31 March 20X3.

    I don’t understand how they have calculated the total loss as 10K for Strata & why?. please help.

    solutions says:

    strata as per draft 4000?
    add back before purchase loss: 6000?
    total 10 K

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