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Consolidated financial statements 2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Consolidated financial statements 2

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
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  • May 4, 2016 at 1:32 am #313588
    abrizni10
    Member
    • Topics: 55
    • Replies: 49
    • ☆☆

    Sir in the question,
    B acquired 75% for 8900000, but in the financial position for B under Assets the investment views as 8400000? Which figure I must take it to calculate goodwill? Moreover should I minus 8900000 and 8400000 and show it under consolidated Finacial postion? Sir pls clear my doubts?

    May 4, 2016 at 7:27 am #313622
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    If they paid 890,000 then this is the amount that will appear in B’s SOFP.

    May 4, 2016 at 8:21 am #313641
    abrizni10
    Member
    • Topics: 55
    • Replies: 49
    • ☆☆

    So we should ignore 8400000 when calculating the goodwill?

    May 4, 2016 at 11:21 am #313660
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    It will not be different – the investment in B’s SOFP will be the same as the amount they paid for the shares.

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