Italian Ceramics Limited acquired Sonia Tiles Limited for a purchase consideration of 20 million The fair value of assets and liabilities taken over are as follows 1 Ascertain the value of goodwill to be recorded in the above transaction 2 How will the goodwill amount be treated in the books of Ita...

1 Goodwill Purchase consideration Net assets Goodwill 20 million ...

Italian Ceramics Limited acquired Sonia Tiles Limited for a purchase consideration of 20 million. The fair

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Italian Ceramics Limited acquired Sonia Tiles Limited for a purchase consideration of ₹ 20 million. The fair value of assets and liabilities taken over are as follows:

Particulars Assets Land and building Plant and machinery Other assets Liabilities Trade payables (in Million)

1. Ascertain the value of goodwill to be recorded in the above transaction.

2. How will the goodwill amount be treated in the books of Italian Ceramics Limited?

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Financial Accounting For Managers

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Authors: Sanjay Dhamija

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Question Posted: Dec 05, 2023 03:03 AM

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Italian Ceramics Limited acquired Sonia Tiles Limited for a purchase consideration of 20 million. The fair

Question:

Particulars Assets Land and building Plant and machinery Other assets Liabilities Trade payables (in Million) 8.5 7.9 6.0 4.5

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Financial Accounting For Managers

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