Aquisition Method- Goodwill

CFA Level II FRA
#1

For those of you who have the CFA curriculum book, on page 154 in the Financial Reporting & Analysis book, there’s an example about the aquisition method. Was just wondering if anyone knew where the EURO390k figure for consolidated PP&E came from in solution 1. When I add 100% of the subsidiary’s assets and liabilities at fair value, I don’t get 390k.

Thanks!

#2

wow sorry… apparently i cannot add!

#3

You got 235k from parent’s book value and simply add subsidiary’s 155k fair value of PP&E. The sum makes 390k of PP&E. Just watch PP&E account.