Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Griffin Plc purchased 60% of Nolan's Plc 2.4 million 1 shares on 1st January 2020. Consideration comprised of 2,400,000 cash at the acquisition date

image text in transcribedimage text in transcribed

Griffin Plc purchased 60% of Nolan's Plc 2.4 million 1 shares on 1st January 2020. Consideration comprised of 2,400,000 cash at the acquisition date and 1,200,000 of cash payable on 1st January 2022. Part of consideration was also 2 shares in Griffin Plc for every 5 shares purchased in Nolan Plc. The market value of Griffin's and Nolan's shares as at 1st January 2020 were 4 and 3 respectively. The fair value of Nolan's net assets as at 1st January 2020 was 7,000,000, and the non-controlling interest in Nolan was measured a fair value. Griffin Plc has a cost of capital of 10%. DF 0.826. Calculate the amount of goodwill to be shown in the statement of financial position as at 31st December 2020 by filling in the blanks: Consideration is calculated as the total of cash Blank 1 plus deferred cash Blank 2 plus shares Blank 3. The amount of NCI at the acquisition date is Blank 4. Net assets at the acquisition date is Blank 5 Goodwill amount to be presented in the consolidated statement of financial position is E Blank 6. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer Blank 41 Add your answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

7th Edition

1259066487, 978-1259066481

Students also viewed these Accounting questions

Question

What do media buyers do?

Answered: 1 week ago

Question

1. In what way is this government agency different from a business?

Answered: 1 week ago