CFA topic - FRA suburban

Hi all, I don’t understand why in the calculation of the noncontrolling interest, for the subsidary it’s used the fair value of the subsidiary (based upon purchase price) and not the subsidiary net asset which are given (99 million)

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In the vignette they say "Suburban purchased 60% of the company’s shares in exchange for its own shares. " So, I don’t see the link between the exchange for its own shares with the new issued in acquisition. They don’t say, that for the exchange suburban will issue new shares! I don’t see the link between exchange and new issues…

Anyone can help me?

Once again I am very skeptic about the quality of CFA topic exercises especially for FRA. EOC I was doing well (around 70%), but with the cfa topics I am around 2 or 3/6… Moreover, I find how the exercises are written, how the data are given (and named!) and also how the solutions are given really confusing.

Its business combination with non-controlling interest under US GAAP. So you add the whole fair value of HiQ ($14 x 8,000,000) to Surburban’s shareholder’s equity including minority’s interest (full goodwill method). Assets and liabilities are combined using book values of Parent and fair values of Subsidiary. See FRA - example 9.

A vast majority of the FRA topic tests give me nightmares

I can’t see the full question so I won’t respond to that part. When I took L2 least year, I pretty much ignored the Topic Tests. I did the first FRA one (Ericcson), and browsed a few more, and then made the judgment that there was no way the exam could be this hard or nowhere near 50% would pass. My experience proved this out. The actual exam for FRA was much easier than the topic tests. Getting 50%, or even lower, on the Topic Tests is not a cause for concern. the CFA mock and Schweser mocks were much more representative of the actual test., in my experience.

It is helpful to hear that topic tests aren’t end all be all. I have been so discouraged past few days trying to do topic tests. Maybe I will revert back to Schweser before I do CFAI mock exams