Page 302 - SBR Integrated Workbook STUDENT S18-J19
P. 302
Chapter 19
Example 5
Share purchases
DEF owned 70% of the ordinary shares of RST for many years. In the current
period, DEF sells 10% of the shares of RST for $2 million. On the sale date,
the goodwill and net assets of RST were carried at $7 million and $23 million
respectively. The non-controlling interest was valued at fair value at the
acquisition date.
No entries have yet been posted in respect of this transaction.
What adjustments are required in the consolidated financial statements
to reflect the above transaction?
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