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Pole acquired 80% of the issued equity shares of rod for $43 m on 1st March 2008. Rod had retained earnings of $15m at 1 July 2007 and made a profit after tax of $6m for the years ended 30 June 2008. At the date of acquisition, Rod had equity share capital of $25m and the F.V of the NCI was $10m. On 1 March 2008 the F.V of land and buildings owned by Rod was $1m in excess of their carrying amount .
What was the Goodwill on acquisition of rod for inclusion in the pole consolidated financial statement for the year ended 30 June 2008?
Fv of consideration paid 43m
Fv of NCI at acquisition. 10m
Less :
Equity share 25m
RE at acquisition 4m
Fv adj. 1m* I don’t know what to do now* need help
Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they have answers and explanations.
Have you watched my free lectures on this? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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