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March 2020 past paper Q1

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.

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August 17, 2020 at 8:51 am #580856
reeya
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Hi sir,
Regarding q1 of March 2020 past paper for goodwill calculation why did they multiply the consideration and NCI by the opening rate?
At the end the goodwill at acquisition they divided by opening rate instead of closing rate ?
August 17, 2020 at 12:02 pm #580889
Stephen Widberg
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When calculating goodwill, you must first calculate at acquisition using opening rates.
Then remeasure the carrying amount at closing rate.
Exchange difference will then be reported in OCI.
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