What value should be placed on the purchase consideration

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Die, a private limited company, has acquired Coal, a private limited company, on January 1, 2015. The fair value of  the purchase consideration was 10 million ordinary shares of P1 of Die, and the fair value of the net assets acquired  was P 7 million. At the time of the acquisition, the value of the ordinary shares of Die and the net assets of Coal were  only provisionally determined. The value of the shares of Die (PI I million) and the net assets of Coal (P 7.5 million) on  January 1, 201 5, were finally determined on November 30, 2015. However. The directors of Die have seen the value  of the company decline since January 1, 2015, and as Of February 1, 201 6, wish to change the value of the purchase  consideration to P9 million.

Problem 1: What value should be placed on the purchase consideration and assets of Coal as at the  date of acquisition?

Reference no: EM132665710

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