Lomoarcpsd7457597 donna company pays p10000000 in

lOMoARcPSD|7457597

Donna Company pays P10,000,000 in cash to acquire the assets and liabilities of Divine Company.
Donna records a bargain purchase gain on acquisition of
lOMoARcPSD|7457597
35. An entity acquired 60% of the share capital of a foreign entity on June 30, 2020. The fair value of
the net assets of the foreign entity at that date was 6 million baht. This value was 1.2 million
higher than the carrying amount of the net assets of the foreign entity. The excess was due to the
increase in value of non-depreciable land. The functional currency of the entity is the peso. The
financial year-end of the entity is December 30, 2020. The exchange rates at June 30, 2020, and
December 31, 2020 were .5 baht = P1 and 2 baht = P1, respectively.
What figure for the fair value adjustments should be included in the group financial statements
for the year ended December 31, 2020?