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Dear Sir / Madam,
In one of the problems on Group Accounts – Parent first acquires 20% of Subsidiary then acquires 60% further to gain control. Now we are supposed to calculate goodwill ONLY WHEN CONTROL is gained by following method.Fair Value of 20% Consideration
Plus
Consideration for 60% acquisitionLess – Net Assets Acquired on the day of 60% Acquisition ( i.e when control achieved).
ACCA solved answers calculates good will 2 times differently i.e
1) One for 20% Acquisition separately
2) One for 60% Acquisition separately.Which method is correct and it gives 2 different answers for Goodwill calculation. What is right and what is wrong !
Kindly guide.
Deep
What date was the ACCA question where goodwill was calculated in two stages? That’s the way we used to do it but it was changed when IFRS 3 was revised
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