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ACCA F7 December 2008 Question 1 Pedantic
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i was wondering the same thing Alex. I’m still confused by it and trying to work it out.
@sueellen, The $5.9M is the FV of the NCI at acquisition mentioned in note 5 of the question.
Where is the value of NCI $5.9M in the question? It only says goodwill attributable to NCI $1.5M.
@alextrunghuynh, In a situation where Steve Scott tells you the value of the goodwill attributable to the nci, you still need to calculate the value of the nci INVESTMENT.
The way to do this is to realise that the nci investment is equal to their proportional share of the S fair valued net assets at date of acquisition + the goodwill attributable to them
So, for example, ( 30% x FV of SNA @ DOA ) plus the 1.5 million
OK?
thank you