Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the share capital and reserves of
Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the share capital and reserves of Company B are:
Share capital | $8 million |
Retained earnings | $2 million |
| $10 million |
|
|
- What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at fair value? (1 marks)
- What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at the non-controlling interests proportionate share of the acquirees identifiable net assets? (1 marks)
- Pass the necessary consolidation journal entries and the journal entries to record the non-controlling interest if the non-controlling interest in the acquirer is measured at the non-controlling interests proportionate share of the acquirees identifiable net assets. (4 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started