FR (Page 350)

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(Goodwill as 1 combined figure) If the holding company acquires the subsidiary company and thereafter the subsidiary company acquires the sub-subsidiary company then goodwill should be computed in two stages i.e. At the point when the holding company acquired subsidiary company and on the date when the group acquired the sub-subsidiary company. 2001 2002 2003 H 80% P & L reserves on Acquisition 75% P& L reserves on acquisition Lesson Four 193 FINANCIAL ACCOUNTING III (Separate figure for goodwill) NOTE: Goodwill is still computed using a single cost of control for both situations only that the first partof the cost of control deals with the subsidiary and second part deals with the sub-subsidiary.
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