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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Consolidated SOFP & SOCI
Hello,
I’ve some issues in group accounts:
1: w co purchased 70% of b co ordinary shares for $8800000 at 1 November 2007 (9260000 $1 shares of b co in total) when b co Retained earnings were $750000.
it is group policy to value NCI at fair value. for this purpose fair value of Good will attributable to NCI was $600000.Consolidated good will was not impaired at 31st October2008.Retained earnings of b co at the end of the year $4750000.Calculate Good will arising on Acquisition of b co.
2: if parent company owns some of Sub co loan notes , how to treat them in SOFP & SOCI(interest on loan notes & income for the parent co)
3: if Parent owns all of the shares in Subsidiary and no NCI exist, how to calculate good will.?
Thanks for all.
(1) and (3) are both covered in detail in our free lectures on consolidations.
I cannot type out all the lectures here.
(2) is not relevant for Paper F3 🙂