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Hi? I have a question in which “investment in subsi” does not equal to FV of consideration, so in finding out GW, which amount I should use?
Hi,
The figure that you use in the goodwill calculation is the FV at the date of acquisition. If this has changed since the date of acquisition due to a change in the share price (say) then you will still use the FV at date of acquisition.
When you consolidate the SFP line-by-line then you will remove the value of the investment in the subsidiary in full but also remove any gain from reserves.
Thanks
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