Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Equity Method
- This topic has 3 replies, 2 voices, and was last updated 6 months ago by Stephen Widberg.
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- June 2, 2024 at 4:47 pm #706461
Hello
Supposing an investor has an associate with 30% share holdings and significant influence. The investor has always accounted this using the equity method.
Some years later, the investor acquires additional shareholding in that associate and its significant influence still remain unchanged.
How should we account for the new shareholding in that associate?
Should we AGAIN determine the investor’s share of the net fair value of the associate’s identifiable assets and liabilities at new acquisition date?
Should we recalculate the goodwill based on new shareholdings?
Much obliged, Sir
June 3, 2024 at 6:52 am #706494Associate = cost plus share post acquisition profits.
Not sure why you are thinking about goodwill.
Which question are you looking at?
🙂
June 3, 2024 at 12:41 pm #706520It’s not an exam question.
Out of the blue came to my mind 🙂
June 4, 2024 at 6:56 am #706584No worries.
But please see my previous post.
No goodwill.
🙂
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