Calculation of net assets acquired
giedre3325
Registered Posts: 1
Hi everyone,
I hope someone will know the answer to this. I was doing a sample assessment 1 on Financial Statements of Limited Companies, and I don't quite understand how the net asset acquired on task 1.6 is calculated..
As I thought before, net assets acquired should be: share capital + pre-acquisition retained earnings + the adjustment to fair value of assets. However it looks like the calculation in AAT is equity 300000 + adjustment 100000 - pre-acquisition retained earnings 40000. Why is that?
Please help, I feel so dumb not being able to work this out! Are pre-acquisition retained earnings not part of equity?
thanks xxx
I hope someone will know the answer to this. I was doing a sample assessment 1 on Financial Statements of Limited Companies, and I don't quite understand how the net asset acquired on task 1.6 is calculated..
As I thought before, net assets acquired should be: share capital + pre-acquisition retained earnings + the adjustment to fair value of assets. However it looks like the calculation in AAT is equity 300000 + adjustment 100000 - pre-acquisition retained earnings 40000. Why is that?
Please help, I feel so dumb not being able to work this out! Are pre-acquisition retained earnings not part of equity?
thanks xxx
0
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