In June 2007, Deutsche Post World Net acquired 49 percent of the shares of U.S. airline ASTAR

Question:

In June 2007, Deutsche Post World Net acquired 49 percent of the shares of U.S. airline ASTAR Air Cargo Holdings for ‚¬67 million. ASTAR is consolidated by Deutsche Post. Following is information on ASTAR's identifiable net assets at the date of acquisition:

Required
a. Calculate total goodwill and the reported amount of noncontrolling interests at the date of acquisition, assuming Deutsche Post uses the IFRS alternative valuation method for noncontrolling interests.
b. Prepare the consolidation eliminating entries at the date of acquisition.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...

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In millions a Calculation of goodwill Acquisition cost 67 Less 49 fair va...View the full answer

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Advanced Accounting

ISBN: 978-1934319307

2nd edition

Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III

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Question Posted: Apr 30, 2016 12:00 PM

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In June 2007, Deutsche Post World Net acquired 49 percent of the shares of U.S. airline ASTAR

Question:

Dr (Cr) (in millions) Fair value Book value 6.0 65.0 5.0 14.5 68.0 (94.0) (87.0) 10.0 65.0 5.0 12.5 68.0 (94.0) (87.0) Aircraft Noncurrent liabilitieS. ..^^^ir " . . Current liabilities Totals.. (22.5) (20.5)

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In millions a Calculation of goodwill Acquisition cost 67 Less 49 fair va...View the full answer

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