On Page 21 Q7, I thought the answer should be +1MM. Do you know why it says -1MM. Shouldn’t it be for held for trading, NI+Change in Fairvalue-Dividends paid? (6-3-2)? Any help would be greatly appreciated
you don’t include the NI. it’s just -3 (loss in fair value) + 1 (dividends) edit: i realise this explains nothing. as they’re only holding 10% of the company, you just treat it like a normal stock holding. Only if you had some influence over the company would you start to include it’s NI (eg under the equity method).