how do i determine the cost of investment for the purpose of goodwill in a situation where say 60% investment acquired and a further 20% acquired at another date without the question giving you the amount paid for the 60% or 20% but given as a single figure in the statement of financial position of the parent company.for example:
P S
investment in P 100,000 -
ACCA Forums
SBRchanges in the composition of a group
Thanks for your response. Unfortunately it is not in the question.
@ wesbyss, the question is a bit long hence typing it here will be time consuming but if you do not mind i can send a scanned copy to your email.If this option is okay with you please provide your email address.
I have sent a scan copy. Hope you have seen it. What is your take on it.
I haven't seen the question, but I can hazard a guess.
The cost of the investment of the subsidiary in the parent's statement is the price paid, plus/minus subsequent profits/losses. If you can work out the profits and losses and elongate those, you'll be left with the original price paid.
Oh yes, that's true! Then they can simply use the figure in the parent's statement, can't they?
I meant eradicate before, not elongate btw! (Auto correct on my phone)
Sign into reply to this topic.