Kaplan Chapter 2 – Complex Group Illustration 1

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February 22, 2011 at 8:56 pm #47513

butterfly21
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Hello,

is anyone else using this book? If so I am confused slighlty with the worked example David, Colin and John. In working out the Goodwill the cost of investment in the sub subsidiary says it is $60k (75% of £80k) the 75% is the group interest I get that but I dont get the $80k. It says it accquired 40,000 $1 shares in John? is it the net assets at reporting date of John that you take?

Any light on this would be great – thanks!

February 26, 2011 at 8:53 am #78942

sefiller
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40000 is the number of shares that the Craig has obtained but the money that he paid for them is determined from the balance sheet “Shares in subsidiary” which is 80000.
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