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Hi ,
Sir I am unable to solve Question no 6 of this chapter naming Reading and Orange plc.
I have gone through solution below that chapter.But according to me NCI’s COI: 600,000*20%*2.15= $258,000 should be this.
Please guide me to how have you worked out the depreciation there? I don’t why you divided first 16 with 12 and then multiplied it by 10000?
“Please guide me to how have you worked out the depreciation there? I don’t why you divided first 16 with 12 and then multiplied it by 10000?”
According to the dates in the question, the acquisition was made 16 months ago (1 May 2013 compared with the year end 31 August 2014) so that explains that bit of uncertainty
However, there are still two errors in the answer 🙁
First, the share price of Orange at date of acquisition should be $2.10 and
Second, the rounded answer should be $259 (it’s actually $258,667)
Sir I am confused with IAS8. I have gone through your notes. After that I attempted the practice question and I was shocked by seeing that none of the question was done correctly by me. 🙁 I don’t get the concept I think of IAS8.
Please help me!
Ema, the reason why there is no video lecture for IAS 8 is because it’s seen (by me, at least) as very much a fringe area.
If you’re struggling with it ,…. so be it. There are far more important areas to get totally on top of before you start fretting about IAS8!
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