Chapter 11 – Changes in group Structure

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January 22, 2017 at 1:35 pm #368872
rav989
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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
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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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