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Chapter 20

2.3 Workings

All consolidation workings are the same as for a vertical group, with the exception of
goodwill. The goodwill working for the sub-subsidiary must include:

 Direct consideration – the amount paid by the parent

 Indirect consideration – the amount paid by the subsidiary

 The indirect holding adjustment – calculated as before.

Illustrations and further practice

Now try TYU question 3 from Chapter 20.

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