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Consolidated financial statements 2

This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.

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May 4, 2016 at 1:32 am #313588
abrizni10
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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
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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
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So we should ignore 8400000 when calculating the goodwill?
May 4, 2016 at 11:21 am #313660
John Moffat
Keymaster
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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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