The value of the net assets of Adom Plc as disclosed on the statement of financial position at 31 December 2018 was GHC800,000. The book values of the assets approximated their fair values except a property which had its fair value exceeding the book value by GHC40,000 and inventory with a book of GHC 60,000 and a net realizable value of GHC50,000. What is the fair valuation of the business?
The value of the net assets of Adom Plc as disclosed on the statement of financial position at 31 December 2018 was GHC800,000. The book values of the assets approximated their fair values except a property which had its fair value exceeding the book value by GHC40,000 and inventory with a book of GHC 60,000 and a net realizable value of GHC50,000. What is the fair valuation of the business?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The value of the net assets of Adom Plc as disclosed on the
31 December 2018 was GHC800,000. The book values of the assets approximated their fair values
except a property which had its fair value exceeding the book value by GHC40,000 and inventory with
a book of GHC 60,000 and a net realizable value of GHC50,000. What is the fair valuation of the
business?
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