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ACCA P2 Group SFP – Change in structure – Example 5

JJey8y ago
I have two questions. 1. Well calculating Goodwill, don’t you have to separate GW attributed to Parent and NCI? For jones in this question pre acq value was 110 so wouldn;t parent GW be 120-(110×90%)= 21? Sub 13-(110×10%)=2 Thus total GW of 23 as shown in the question? 2. Also when valuing the 20% sold, I’m confused on whether it should be [120+the attributable GW+ post acg retained earning (90% x10)}x20% Then use this as the increase in value of NCI Please advise
P2-D2P2-D2Tutor8y ago#1
Hi, 1. When calculating the goodwill we don't have to split it out into its constituent parts, we just calculate is as we've done previously. 2. Why are you doing it differently? Thanks
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