Question
The National Co. acquired 80% of the Local Co. for a consideration transferred of P100,000,000. The consideration was estimated to include a control premium of
The National Co. acquired 80% of the Local Co. for a consideration transferred of P100,000,000. The consideration was estimated to include a control premium of P24,000,000. Locals net assets were P85,000,000 at the acquisition date. Are the following statements TRUE or FALSE, according to IFRS 3, Business Combination.
1.-Goodwill should be measured at P32,000,000 if the non-controlling interest is measured as it share of Locals net assets.
2- Goodwill should be measured at P34,000,000 if the non-controlling interest is measured at fair value.
Select one:
a.
Statement 1 - True Statement 2 - False
b.
Statement 1 - False Statement 2 - False
c.
Statement 1 - True Statement 2 - True
d.
Statement 1 - False Statement 2 - True
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