Goodwill

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May 13, 2017 at 10:50 am #386064
sarmadkhalid45
Participant
- Topics: 8
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H acquired 80% S for 10. At that date the PROVISIONAL FV of S’s NA was 8.
The actual FV of the NA’s at acquisition was confirmed 13 months later to be 9.
How much will goodwill be in the latest accounts if no impairments have occurred?
The ans is 3.6 ..But how?
May 16, 2017 at 10:32 am #386409
P2-D2
Keymaster
- Topics: 4
- Replies: 7232
Hi,
The change in the NA at acquisition is not relevant as it occurred more than 12 months after the acquisition date. The goodwill figure will therefore be based on the NA at acquisition of 8.
Consideration 10
NCI@acq 1.6
(20% x 8)
NA@acq (8)
3.6
Thanks
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