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P2-D2.
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sekeoo99
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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?
P2-D2
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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
sekeoo99
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