Unit 11 - Grp Rep - Consol Fin Stat

Calculation of goodwill cost of investment in s ltd

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Unformatted text preview: 4,200 (400) (900) 3,300 2,000 900 400 3,300 27 Example 2 - Solution (1) Consolidation Schedules 1. Calculation of goodwill: Cost of investment in S Ltd FV of NCI (2,100/80% x 20%) FV of S Ltd (at acquisition date) Less: FV of net assets of S Ltd (at acq. date) Share capital Retained profits (pre-acq. profits) Goodwill (at acquisition date) Less: Goodwill impairment Goodwill (at reporting date) - Parent’s share at 80% - NCI’s share at 20% $000 2,000 400 $000 $2,100 525 2,625 2,400 225 110 115 92 23 115 28 Example 2 - Solution (1) Consolidation Schedules 2. Non-controlling interests: Share capital Retained profits + Proposed div.(900+400) FV of net assets of S Ltd NCI’s share at 20% NCI’s share in goodwill FV of NCI (at reporting date) $000 2,000 1,300 3,300 660 23 683 29 Example 2 - Solution (1) Consolidation Schedules 3. Consolidated retained profits: H Ltd: S Ltd: R/P at reporting date: Retained profits + Proposed final div. Pre-acquisition profits Post-acquisition profits Parent’s share at Less: Share of goodwill impairment (110x80%) $000 1,300 400 900...
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