Also, now that you want to point to gain on acquisition in the SCI, I would like to understand why you consider it an accounting ‘bullshit’. If my accounting memory serves me well, once you acquire an entity, you have to consolidate its assets and liabilities in your books. To do that you’re required to use the lower of FV and NRV when valuing assets and PV for liabilities. If the FV/NRV of assets acquired exceed PV of liabilities you carry it in the books as Goodwill and amortise over years as you are required to reassess it annually. The question I would be asking is why the difference was posted in the first year in the SCI instead of being held in the SFP as an asset. To call it bullshit however is to demonstrate an ignorance in how to account for mergers and acquisitions. Also remember, if the PV of liabilities exceed FV/NRV of assets, the loss on acquisition is accounted for immediately in the SCI. It would make sense therefore to expect a gain to be realised there too.
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