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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › TRAVELER (12/11)- Goodwill Calculation
Dear Sir,
This concern is about requirement (b) Goodwill calculation of ‘Traveler’ company.
Here in the Acquisition consideration of Data why we will not take account cash consideration of 220m (to buy further interest of 20 percent)?
Do we only consider the consideration of acquiring control (when Traveler bought 80 percent of Data)?
Moving from an associate to a subsidiary – calculate the gain on sale of the associate and use the fair value of the associate investment as part of the cost of acquiring control in the subsidiary
BUT!!! Moving from subsidiary to subsidiary – there is no handover of control. We DID have control and now ….. we still have control. So no gain nor loss on deemed disposal.
Have you read through the course notes?
Thanks, I got it and yes, I read notes. 🙂
You’re welcome, and “Good”