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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Increase shareholding in subsidiary
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
Neither – see p28 of our notes – adjustment is against NCI
