[AC]

Hi Mike

This is better.

In this case, i dont need to calculate the goodwill for C?

[AC]

Hi Mike

I dont quite get it. Can you please elaborate further?

[AC]

Hi Mike

Let’s say:

B paid 80k to acquire 40% of C and another 40k to acquire 20% of C.
A paid 500k to acquire B on May 2009

goodwill calculation:

A in B = 500k (COI) + 100k (NCI) – 100k (share captial) – 400k (retained earning) = 100k

B in C = (80k + 40k) x 80% (COI) + (100k + 300k) x 52% – 100k (share capital) – 300k (retained earning) = -96

Is my calculation okay? do i write off the negative goodwill?

[AC]

Hi MikeLittle

do we need to take into account of time value of money in parent’s book?
Thank you

[Author]

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