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goodwill calculation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › goodwill calculation

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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    Posts
  • April 15, 2021 at 11:08 pm #617793
    thapa7
    Participant
    • Topics: 5
    • Replies: 6
    • ☆

    hello sir
    suppose, the fair value of land of subsidiary company was 20,000 greater than carrying value at the date of acquisition but that land is still with subsidiary company. then while calculating goodwill do we need to adjust it (deduct it from consideration transfered) ?

    April 16, 2021 at 9:13 am #617853
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Yes we do, and we also increase the value of the land in the consolidated SOFP.
    I do explain this in my free lectures on consolidations.

    (The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.

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