Unit 11 - Grp Rep - Consol Fin Stat

# Calculation of goodwill cost of investment in s ltd

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online