Page 272 - SBR Integrated Workbook STUDENT S18-J19
P. 272
Chapter 18
5.5 Recognise goodwill and the NCI
Consideration
When calculating goodwill, purchase consideration is measured at fair value.
Method of payment Measurement
Cash (upfront) Cash paid
Deferred cash Present value (PV)
Shares (upfront) Fair value at acquisition
Deferred shares Fair value at acquisition
Fair value
Contingent The exam will either provide the fair
consideration value or enough information to
calculate it.
Professional fees are expensed to profit or loss.
266
