Step by step acquisitions

Home Forums Ask ACCA Tutor Forums Ask the Tutor ACCA P2 Exams Step by step acquisitions

This topic contains 3 replies, has 2 voices, and was last updated by Avatar of MikeLittle MikeLittle 1 year, 8 months ago. This post has been viewed 338 times

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts

  • avatar
    benitez
    Participant
    • Topics: 5
    • Replies: 10

    Hi Mike,

    Do you need to calculate goodwill separately if we have an associate prior to beginning of year and then further purchase of share to a subsidiary at acquisition.
    ?

    Thanks brian


    Avatar of MikeLittle
    MikeLittle
    Keymaster
    • Topics: 0
    • Replies: 6954

    Yes, in the exam room. But what do you mean “separately”? We no longer calculate goodwill for an associate. On acquisition, we replace that w2 calculation with a revised calculation to find “Cost of control” and ” …. employees’ relaxation station”


    avatar
    benitez
    Participant
    • Topics: 5
    • Replies: 10

    Hi Mike,

    Thank you for your reply.

    The question was based on the December 2007 paper. Goodwill was calculated separately for the increase of equity interest from an associate to a subsidiary for both a Sub and an associate. I guess the standard has changed since.

    Employees relaxation room wasn’t sure what this implied!

    Thanks
    Brian


    Avatar of MikeLittle
    MikeLittle
    Keymaster
    • Topics: 0
    • Replies: 6954

    Hi, yes I believe it has.

    “Employees relaxation station”!!! What on Earth is THAT?? I had just finished a long and difficult day and clearly my typing fingers were not connected with my brain.

    OOOPS! Sorry about that

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.