B
BuggaP
Member
Two questions:
(1) when we talk about the method and assumptions for calculating the bulk transfer, we are referring to the amount that the two companies agree on (or, equivalently, the amount which the vendor decides upon, and which the purchaser adjusts the purchase price by), right? (As opposed to the amount actually paid by the vendor's trustees)
The course notes seem to interchangeably refer to the bulk transfer as being the amount the companies agree on, and the amount the vendor's trustees actually pays. This is what has confused me.
(2) what is the "purchase price adjustment" and what is it's significance? It is often referred to in c18 but I can't see it defined anywhere. Is it just the adjustment made by the purchaser based on how its view of the size of the liabilities differs from the vendors bulk transfer calculation? I get the feeling it is something different.
Thanks and good luck to everyone sitting the exam tomorrow.
(1) when we talk about the method and assumptions for calculating the bulk transfer, we are referring to the amount that the two companies agree on (or, equivalently, the amount which the vendor decides upon, and which the purchaser adjusts the purchase price by), right? (As opposed to the amount actually paid by the vendor's trustees)
The course notes seem to interchangeably refer to the bulk transfer as being the amount the companies agree on, and the amount the vendor's trustees actually pays. This is what has confused me.
(2) what is the "purchase price adjustment" and what is it's significance? It is often referred to in c18 but I can't see it defined anywhere. Is it just the adjustment made by the purchaser based on how its view of the size of the liabilities differs from the vendors bulk transfer calculation? I get the feeling it is something different.
Thanks and good luck to everyone sitting the exam tomorrow.