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