OT notes Chapter 7 - Example 5 — OpenTuition Forums

AAAli Ansari6y ago

I'm just getting confused by the solution answers at the back, 1) the good will exchange loss is calculated as 369 when calculating good will but at the back when we calculate all the exchange losses in the end goodwill loss doesn't match it's used opening rate 3.9 at 1 Jan 20X8 ?? This seems wrong to me 2) The fair value of excess of 4000 ,shouldn't a depreciation of 3 years (1200) be deducted when we calculated when we workout post acq reserves. At the back it's deducted only 800 Can I get a clarification on this ,are the notes solutions not correct at the back?

stephenwidbergTutor6y ago#1

Goodwill part (a) - XD on goodwill (cumulative) - should be comparing XR at acquisition with XR at SFP date - we are preparing SFP working (not XD for OCI) part (b) - just look at change in year as we are doing OCI FV Adjustment I think you are correct - we need to change date of acquisition to 1/1/x7. Thank you for pointing this out

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