Question
P Ltd paid $300,000 to acquire 60% of S Ltd on 31 December 20X8 when S Ltds net assets were represented by share capital of
P Ltd paid $300,000 to acquire 60% of S Ltd on 31 December 20X8 when S Ltds net assets were represented by share capital of $100,000 and retained profits of $100,000. At the date of acquisition, (i) S Ltds land which was carried in the statement of financial position at $200,000 had a market value of $300,000. (ii) S Ltd had a brand name with a market value of $100,000, and (iii) there was a legal suit against S Ltd for $100,000 which the company lawyer was of the opinion that there was 30% chance that S Ltd will have to pay. The group policy was to measure non-controlling interest based on its share of acquisition-date fair value of identifiable net assets of subsidiary acquired. The Land, Brand, Provision for litigation, Goodwill and non-controlling interest in the consolidated statement of financial position as at 31 December 20X8 should be respectively
ANSWER: $300,000, $100,000, $$30,000, $78,000 and $148,000 PLEASE PROVIDE WORKINGS AND EXPLANATION FOR GOODWILL of 78K and NCI of 148K.
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