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Bochem acquired 80% of the equity interests of Ceram, a public limited company, on 1 May 2008. The
purchase consideration was cash of $136 million. Ceram’s identi? able net assets were fair valued at
$115 million and the NCI of Ceram attributable to Ashanti had a fair value of $26 million at that date. On
1 November 2009, Bochem disposed of 50% of the equity of Ceram for a consideration of $90 million.
Ceram’s identi? able net assets were $160 million and the fair value of the NCI of Ceram attributable to
Bochem was $35 million at the date of disposal. The remaining equity interest of Ceram held by Bochem was
fair valued at $45 million. After the disposal, Bochem can still exert signi? cant in? uence. Goodwill had been
impairment tested and no impairment had occurred. Ceram’s pro? ts are deemed to accrue evenly over the yearHey men,
I assume the financial year here is from 1 May 08 to 30 April 09, so Cerem will 1/2 years subsidy and 1/2 years associate of Bochem, ok?
First, we calculate GW at the acquisition date:
136 + 26- 115 = $47 m right?
Now up to 1 Mov 09 the subsidy become to associate because Bochem dispose right?
Profit/(loss) ondisposal will be:
Cash receive : 90m + Remained hold : 45m – (GW 47 + FVNA 160 – NCI 35) = 37m this amount will hit negative to other income in P/L or R/E in BS.
hope it works
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