Question
On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B
On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was:
Share capital
General reserve
Retained earnings
$100000
50000
60000
At 1 July 2016, the fair value of the non-controlling interest was $45000 and A Ltd adopts the full goodwill method.
.At 30 June 2018, the equity of B Ltd consisted of:
Share capital
General reserve
Retained earnings
$100000
70000
90000
During the 2017-18 year B Ltd recorded a profit of $20000.
Required
Prepare the acquisition analysis at 30 June 2018 assuming A Ltd adopts the full goodwill method.
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
