CFAI Vol II - solution page 187, balance sheet page 183 Wondering why in the solution 580 is the net book (fair) value of recorded assets. This number is important b/c it is used to calculate the fair value of the licenses. In the Balance Sheet, there is 580 of Retained Earnings for NinMount’s and 580 of Equity for Boswell. I don’t see how 580 is the net book (fair) value of recorded assets. 'Lil help?
In the blurb it says FV of assets and liabilities = BV of assets and liabilities, therefore the net assets (equity) is equal to the net book value.
I was about to answer this again, and then I realized I already did in your other post. Long story short 580 is the fair value of the RECORDED assets; the licenses are not recorded (as in they are not on the balance sheet). look at my other post to see the rest
Thank u Palantir & Magicskyfairy!