Group Accounts

This topic has 2 replies, 2 voices, and was last updated 12 years ago by deepmaharaj.

Viewing 3 posts - 1 through 3 (of 3 total)

Author

Posts
November 12, 2013 at 4:59 pm #145684
deepmaharaj
Member
- Topics: 58
- Replies: 32
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% acquisition

Less – 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
November 12, 2013 at 5:18 pm #145695
MikeLittle
Keymaster
- Topics: 27
- Replies: 23369
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
November 12, 2013 at 5:35 pm #145708
deepmaharaj
Member
- Topics: 58
- Replies: 32
Sir, December 2007 ACCA Solved Answers calculate it separately
Author

Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.