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Can anyone help me with this question?
In April 2008, B paid $150k to acquire 60% controlling interest in C, when FV of C identifiable net assets was represented by share capital $100k and retained profit of $100k.
In June 2010, A paid $500k to acquire 80% controlling interest in B. On this date, the fair value of B identifiable net assets was represented by share capital $100k and retained profit of $300k; the fair value of C identifiable net assets was represented by share capital of $100k and retained profit of $250k.
In July 2011, A paid $100 to acquire 30% direct interest in C. On this date, the FV of C identifiable net assets was represented by share capital $100k and retained profit $280k.
How do I calculate the goodwill?
You need to calcuate the Non Controlling Interest at Acquistion, then add the purchase price to the NCI @ Acquistion take off the net assets @ acquisition that will get you goodwill.
But also remember to watch out for impairment.
Also July 2011 wont be full consoldaited as it is not over 50% share holding it will only be an assoicate.
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