Page 487 - SBR Integrated Workbook STUDENT S18-J19

Answers

Example 1 – continued

(W3) Goodwill

DNm

Fair value of consideration 190
Fair value of NCI 42

Fair value of acquisition net assets (W2) (180)
———

Goodwill at acquisition 52
Impairment –

———
Goodwill at reporting date 52
———

Goodwill is translated at the closing rate to give a value of $26 million
(DN52/2).

(W4) Non-controlling interest

$m

Fair value at acquisition 11.1
(DN42/3.8) (W3)

NCI share of post-acquisition profit 4.0
(20% × (DN60/3)) (W2)

NCI share of goodwill forex (W7) 2.5
NCI share of net asset forex (W8) 10.5
———

28.1

———

481