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Consolidated SOFP-Goodwill

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Consolidated SOFP-Goodwill

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • June 2, 2015 at 8:00 am #251770
    Veenshee
    Member
    • Topics: 3
    • Replies: 2
    • ☆

    Dear Sir,

    How can we calculate goodwill if no fair value of non-controlling interest (NCI) is given?

    Question Given:
    Tong acquired 100% of the $100,000 ordinary share capital of Cheek for $1 200 000 on 1 January 20×5 when the retained earnings of Cheek were $550 000 and the balance on the revaluation was $150 000. At the date of acquisition the fair value of plant held by Cheek was $80 000 higher than his carrying value.

    What is the goodwill arising on the acquisition of Cheek?

    Thanks.

    June 2, 2015 at 9:29 am #251833
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    What NCI??

    If Tong acquired 100%, then there is no non-controlling interest!!!

    The goodwill is therefore 1,200,000 – (100,000 + 550,000 + 150,000 + 80,000) = 320,000

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