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I have brain block – I am working through revision notes and doing the examples in Chapter 4 – Basic Group Structures.
In W2) Net Assets of Subsidiary – in example 2 basic consolidation – how do you find the FV – PPE = $400m at reporting date and at acquisition. Have same problem with example 3 in same chapter of revision notes where W2) FV – Land = $400m
I have looked back at my notes and have answered questions before but I just cannot see how I came up with the answer.
Any help is urgently required and would be most grateful
Thanks
Mark
Hi,
Don’t stress. You’re given the fair value of the net assets at the date of acquisition of the subsidiary; we also have the figures for the share capital and reserves at acquisition. Any difference between the total share capital and reserves, and the fair value of the net assets is the fair value adjustment.
Thanks
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