[Nate]

Hi,
The formula for the goodwiil is:
Consideration transferred (what you paid = share in S at cost = 68))
+ fair NCI ( remaining of the share capital in S non acquired value at Market value )= 25% * 50 (SC of S)*$1.6 = 20
– net asset of S at acquisition (SC + Retain earning pre/prio acquisition) = 50 + 15

Hope this help!

[Nate]

Thanks for your reply.

Actually, I get your point regarding the b/f retain earning (we add 3 months profit) .

However, At the level of the profit attributable to nci, we must prorate the profit over the month (meaning 9 months => so we get nci = 40%* profit over 9 month = 40%* 18). I guess I’ve answered your question 🙂

My question is on the next page (175). Why don’t we prorate the net profit for the nci?! it’s written “nci in Lamlash: 20%*40” which is equal to 20%* full profit over 12 months and not 6 month as it should have been the case.

So the question remains open…

[Nate]

I’ve got exactly the same question.

Does anyone have an idea?

[Author]

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