Problems with the cost of acquisition.

This topic has 3 replies, 2 voices, and was last updated 10 years ago by P2-D2.

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May 23, 2016 at 4:06 pm #316612
Arun
Member
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Hi Mike,

Could you please explain the concept of ‘proportional interest in the acquirer’s entity’ and ‘proportional interest in the acquiree’s entity’ when valuing unquoted securities with the help of an example as it tends to get confusing and I can’t really understand.

Thanks.
May 24, 2016 at 2:33 pm #316837
P2-D2
Keymaster
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Hi,

If you could tell me in what context and where you are getting these phrases then I may be able to help. The phrases don’t jump out at me immediately as to what they mean sorry.

Thanks
May 25, 2016 at 9:34 am #316877
Arun
Member
- Topics: 16
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Sorry!

I was talking about pg. 8 in the notes where it tells you how to value unquoted securities in the context of problems with the cost of acquisition.

Thanks.
May 30, 2016 at 10:06 am #318102
P2-D2
Keymaster
- Topics: 4
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Hi,

i don’t think you need to worry about either of these anymore, there is much more detailed guidance available in IFRS 13 about how to value unquoted securities using a market approach, income approach, or adjusted net asset approach.

Thanks
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