- November 24, 2015 at 5:21 am #284820
Dear Mr. Maike,
with reference to this lecture, When taking the pre acquisition R/E from W2 (G/W calculation). It’ comprise only of “pre acquisition R/E” and “increased portion FV” of the W2 and not taking Share premium. …..
What’s about to Revaluation reserve (or any other such reserve (if any), other than the FV increased amount……
shall we need to add them like FV increased amount?
If so, The pre act R/e abstracted from W2 is :
(Pre Acqt R/E)+(FV amount)+(Revaluation or other reserve)
Thanks in advance
PriyanthaNovember 24, 2015 at 8:45 am #284854
“With reference to this lecture …..” Which lecture?
Without knowing which lecture that you’re referring to, the answer to your question is “Yes, we should bring in ALL elements of shareholders’ funds as at date of acquisition”November 24, 2015 at 6:45 pm #284970
Extremely sorry for the inconvenience caused.
The relevant lecture is “P2 Chapter 1 Simple Groups (revision of F7 part 2)”
Ok….well noted Sir,
I understood as below
All the shareholders fund is the total of ( Retain earning, General Reserve, Revaluation reserve and Increase in FV relevant for assets like inventory)
PriyanthaNovember 24, 2015 at 8:31 pm #284997
And share capital, and plant replacement reserve and any other elements that you may find in the equity section of the subsidiary’s SoFPNovember 25, 2015 at 5:22 am #285060
Great sir. Pls apologise for asking questions again and again. and also, I would like to grateful to you for everything…..
Now, I’m 100% confident on consolidation Thanks to YOU & YOUR NOTES…….
PriyanthaNovember 25, 2015 at 8:39 am #285115
🙂 but not over-confident! Treat this exam with the respect that it deserves! Otherwise it could turn round and bite you!
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