Example 11, pg 43 of CFAI Vol 2 - Financial Reporting and Analysis. questions: where do the line items in the solution come from? (i.e. current assets, PP&E, Liabilities)
anyone… anyone… bueller
made up numbers
that was my assumption… poor form though posting erroneous numbers in the “solution”
but do not see what number was erroneous in the soln though
I am seeing this alot in the schweser notes? It’s like, how do they get these numbers and they don’t even say they are made up. I’m guessing these numbers will be given on the exam? CP, I am guessing you have taken Level II, is this true?
The solution is correct, 1.3 mil fair value, with 1.2mil fair value of tangible assets-liabilities, implies a fair value of goodwill of 100K, while the book value of goodwill is 300K. I don’t know where did they come up with PP&E and current assets.
I too am taking the Level II for the first time… .I passed Level I in Dec 2007 and did not want to put myself through a shortened study phase for Level II by trying to take it in June 08.
haha that is what I am doing now, brutal. just passed in dec 08 anyway, GL
in hindsight, i think i should have waited! this curriculum is brutal!