Page 424 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 24

Example 2a

Extract from Hide and Seek example:

(ii) The fair values of the net assets of Seek at the acquisition date
approximated their carrying amounts, with the exception of a plot of
land. This land was held in the financial statements of Seek at its cost of
$145,000 but was estimated to have a fair value of $177,000. This land
was still owned by Seek at 31 December 20X5.

Required:

Prepare the group structure diagram (W1).

Calculate the fair value adjustment required for the Hide group as at
31 December 20X5 and complete the net assets working (W2).

Solution

(W1) Group structure

H
80% NCI = 20%

1 Jan X1
S

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