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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › P2-Chapter 3 Example 4
Mike,
the D shaped good will calculation on three different parts is a bit confusing, if A and L and K and L is calculated at the same time, how will the answer be different. A’s direct investment in L, will that need a good will calculation as well?, if so why? are we not calculating this goodwill using the indirect interest in K. I have found this goodwill of A n L a little bit confusing, help me on this one.
I don’t know – I suppose a combined calculation of the goodwill in L would work since the two investments were acquired on the same day. I’ve never tried it. Why don’t you try to calculate the goodwill arising on the acquisition of L using the combined percentage interest of 60% and see if it comes out the same. If it does, please let me know and I’ll maybe change my approach 🙂