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Hi sir
i came across bpp revision kit (sep17-june 18) que no 106
in the calculation what we normally dovalue at doa xxx
(+) sh on sub post acq ret xx
=xxx
(-)their sh on gw imp (xx)
CSofp =xxxbut in bpp ans their include depr on fv adjust in the calc nci share
value at doa xxx
(+) sh on sub post acq ret xx
(-)dep on fv adj(nci sh)
=xxx
(-)their sh on gw imp (xx)
CSofp =xxxi try to compare with chap 9 Ausra and Danute
which in w4 you did not include depr on fv adj
i quite confuse , should we include depr on fv adj (nci sh) in w4 calc?
thank you advance
Where the fair value adjustment is to an item of tangible non-current assets, there will be a depreciation deduction to be made in arriving at the subsidiary’s post acquisition retained earnings figure …
… and therefore the nci will be credited with their share of those reduced post acquisition retained earnings
I don’t remember there being a fair value adjustment to TNCA in Ausra and Danute … There was an intra-group transfer at a profit that required adjustment but not a depreciation adjustment on fair values
You are correct sir.
For chap 9 expl 1 it’s just fv adjustment for inventory not tnca.
You made it clearer now.
Thank you sir.
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