• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Goodwill (share exchange) & Intra-group

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Goodwill (share exchange) & Intra-group

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 20, 2021 at 9:13 pm #632360
    auguechampion
    Member
    • Topics: 9
    • Replies: 15
    • ☆

    1. Hello Sir, please when there is a share exchange and I’m given the Parent’s share price and the Subsidiary’s share price as well, which of the share prices is correct to use? So, by default, which share price should I always use to value share exchange?

    2. Please if a subsidiary paid dividend, is it correct to deduct it from the Group Retained Earnings? In any case, can you throw some light on it?

    Thank you.

    August 29, 2021 at 10:44 am #633342
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6493
    • ☆☆☆☆☆

    Hi,

    To answer your queries:

    1) S’s share price is used to help calculate the NCI at acquisition under the FV method where we multiply the number of NCI shares by S’s share price. P’s share price is used to value the share consideration as part of the acquisition cost where the number of P shares issued is multiplied by P’s share price.

    2) If S has declared/paid a dividend that has not been accounted for then it would be deducted from the group retained earning. If it has already been accounted for then we do not need to make an adjustment as it has already been adjusted for within the group retained earnings.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • kamo7293 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • John Moffat on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • Hi?n on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • Ken Garrett on ACCA AB Chapter 19 – Macroeconomics – Questions
  • Ken Garrett on ACCA AB Chapter 19 – Macroeconomics – Questions

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy