[xMa87x]

Thanks a lot for your guidance 🙂

[xMa87x]

I will need to prepare the BS and PL for this so I will still need to do their calculations…

Are the above calculations correct workings given the information provided?

Also please is there a suggested approach how to account for negative goodwill?

Thanks!

[xMa87x]

Thanks for your feedback!

Re: Stock I’ve worked it in the meantime and got 36 too
(Dr: Revenue 108, Cr: COGS 72, Cr: Stock 36)

How should I account for negative goodwill given the limited info?
Re: NCI method to use, the question doesn’t specify either of which to use, except that to prepare the financial statements using the acquisition method… How would I know which of the 2 methods to use please?

I have jot it down as:
NCI Working
FV NCI at acq 218
NCI post-acq (25% x 400) 100
Total 318

Group RE Working
ABC RE 1344
XYZ RE 300
Total 1644

Thank you!

[Author]

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