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How do we calculate the worth of the company so that we get the goodwill figure if NCI fv is $4 m and cash payment is $16 m and contingent of $10 m due for 2 years to be paid . The subsidiary retained earning at acquisition $7.8 m and share capital 10 m of $1 each .
The contingent consideration is being valued by specialist at the beginning of acquisition to be $8 m however, it’s fair value at the end of the year was valued $7 m!
The contingent was assessed that there is chance it will be paid and was accounted for in the FS as investment of $26 m but in the NCL section the $10 m was also accounted for.
Who can calculate the the goodwill for me pls and how do we treat that contingent consideration ($10) that is to be paid in 2 years time?
My goodwill calculation resulted to negative if Fv of contingent consideration was applicable.
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