Extracts from the financial statements of QA and LM for the year ended 31 March 20X4 are presented below.

Summarized statement of profit or loss and statement of other comprehensive income for the year ended 31 March 20X4

Additional information:

. QA acquired 35 per cent of the equity share capital of LM for $255 million in 20X1 when the net assets of LM were $670 million. QA was able to exercise significant influence over LM by virtue of this investment. On 1 January 20X4, QA acquired a further 40 per cent of the equity share capital of LM, giving QA control. The consideration paid was $320 million and the net assets of LM had a fair value of $710 million on 1 January 20X4. On 1 January 20X4, the initial 35 per cent investment in LM had a fair value of $280 million.

• Assume that profits gains and losses accrue evenly throughout the year. 

• Non-controlling interest had a fair value of $180 million on 1 January 20X4.

• LM has not issued any share capital since 20X0.

Required: 

Calculate the goodwill arising on the acquisition of LM.

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Profit from operations Finance costs Profit before tax Income tax expense Profit for the year Other comprehensive income: Items that may be reclassified to profit or loss Gains on the investment in LM Items that will not be reclassified to profit or loss Revaluation of property net of tax Other comprehensive income for the year Total comprehensive income QA $m 410 (70) 340 (100) 240 10 50 60 300 LM $m 200 (12) 188 (44) 144 20 20 164