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Increase shareholding in subsidiary

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Increase shareholding in subsidiary

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Stephen Widberg.
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  • October 20, 2019 at 3:00 am #550206
    hvikash
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Hi,
    Say we have an increase in shareholding from 60% to 80% during the financial year.
    For the calculation of goodwill:
    – Do we simply increase the consideration amount by the value of the additional 20% acquired? or
    – Do we have adjust the initial acquisition cost by doing a fair value adjustment of the parent’s previously held equity interest (as it is done in the case of change from associate to subsidiary)?
    Thanks,
    V

    October 20, 2019 at 9:09 am #550222
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    Neither – see p28 of our notes – adjustment is against NCI

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