- This topic has 7 replies, 3 voices, and was last updated 9 years ago by .
Viewing 8 posts - 1 through 8 (of 8 total)
Viewing 8 posts - 1 through 8 (of 8 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › PREMIUM PAYABLE ON ACQUISITION
Hi John
Love your lectures, but regrettably I can’t seem shake this P4.
need to know if my understanding of premium payable on acquisition is ok.
I understand the premium payable to be equal to or lesser than the additional value created/earned through acquisition.
so if company A value $300.00
company B Value $400.00
and company Ab Values $1000.00
then premium should be equal or lesser than $300.00
I anxiously await your reply.
What you have written is correct 🙂
thank you.
You are welcome 🙂
hi sir ,
please could you explain how the premium would be equal or “less” than$ 300.
why is there a possibility of being less?
Because why should they give all of the gain (premium) to the shareholders in the company being acquired?? The acquiring company will want to have some benefit 🙂
oh right ,
that was very simple,got it thanks.
You are welcome 🙂
