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)

Author
Posts
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: 54845
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
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.