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PURCHASE CONSIDERATION

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › PURCHASE CONSIDERATION

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • February 16, 2020 at 5:16 pm #562033
    hanningtonsserwadda
    Participant
    • Topics: 27
    • Replies: 20
    • ☆

    Hi Opentuition. Well done.

    Some thing disturbing me here.

    If a parent acquires a subsidiary but the consideration consists of Cash plus an issue of shares at later date. We have the market fair value of the shares at acquisition date and the market fair value at date of issuance of the shares.

    Which value should we use to value the share issue consideration? Fair value at acquisition or at date of issue. Thanks
    Reply

    February 17, 2020 at 2:38 pm #562107
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3404
    • ☆☆☆☆☆

    FV as estimated at the DATE OF ACQUISITION

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