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Chapter 11 – Changes in group Structure

Forums › Ask CIMA Tutor Forums › Ask CIMA F2 Tutor Forums › Chapter 11 – Changes in group Structure

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  • January 22, 2017 at 1:35 pm #368872
    rav989
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hello,

    Going through Example 5 “Reilly LTD” should the goodwill calculation include the additional 10% ($15M) acquired for Hulme? please could you let me know why it doesn’t?

    Thank you

    Ravi

    January 26, 2017 at 8:45 pm #369850
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7141
    • ☆☆☆☆☆

    Hi,

    No the goodwill is only calculated when we first gain control, which is when we acquired the original 60%.

    The additional consideration is used to look at the change in ownership and the transfer between the group and the NCI.

    Thanks

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