Goodwill mini exercise – Question 5 Panda & Sloth

Hi Mike,

I got all other figures except:

I am unsure what to do with dividend (8)?

Also Please explain composition of the nci investment valuation 76,800,000?

Question 5 Panda & Sloth

On 1 May, 2009 Panda purchased 80% of Sloth’s 120 million $1 equity shares. The acquisition was through a share exchange of three shares
in Panda for every five shares in Sloth. The market prices of shares in Panda and Sloth at 1 May, 2009 were $6 and $3.20 respectively.
?????Retained earnings at 1 November, 2008
Profit/ (loss) for the year ended 31 October, 2009 Dividend for year end 31 October, 2009
Panda Sloth
40 152 47.2 21 – (8)
The fair values of Sloth’s net assets at date of acquisition were equal to their carrying amounts with the exception of an item of plant which had a carrying value of $12 million and a fair value of $17 million.
In addition, Sloth owns, but has not previously recognised, a domain name with a value of $20 million Panda has credited the whole of the dividend it received from Sloth to investment income.
The non-controlling interest in Sloth is to be valued at fair value as at date of acquisition. For this purpose, the Sloth share price at that date

Mini Exercises – Questions
can be taken to be indicative of the fair value of the non-controlling interest’s investment. The goodwill in Sloth has not suffered any impairment

Thanks Mike