NCI at fair value

This topic has 2 replies, 2 voices, and was last updated 9 years ago by myacca1990.

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February 15, 2017 at 6:27 pm #372573
myacca1990
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P investment in S is $68000 and S share capital per $1 is $50,000.Before the acquisition the value per share of S was $1.6.P acquired 75% of shares in S.

Good will

Consideration transferred 68000
Fair value(12500*$1.60) 20000
Net assets of S at acquisition(50000+15000) (65000)
Goodwill =23000

Now i am thinking how that 12500 share calculation came from ?? The non controlling interest is 25% means that means $68000/1.6=42500 shares and 42500*25%=10625 shares right ?Can someone please explain this?
February 15, 2017 at 8:03 pm #372595
Anonymous
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Share Capital of S per $1 is 50,000, so that means there are 50,000 shares.

NCI’s shares are 25% of 50,000, which is 12,500 shares.
February 16, 2017 at 5:59 am #372633
myacca1990
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@suf23 said:
Share Capital of S per $1 is 50,000, so that means there are 50,000 shares.

NCI’s shares are 25% of 50,000, which is 12,500 shares.

All clear mate thanks for the clarification 🙂
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