Page 387 - FR Integrated Workbook 2018-19

Answers

Example 1 cont.

Workings

(W1) Structure

(W2) Net assets ($000)

Acquisition Reporting Post-
date acquisition
Share capital 10,000 10,000

Retained earnings 3,000 4,200 1,200
——— ——— ———

13,000 14,200 1,200
——— ——— ———

(W3) (W4)/(W5)
(W3) Goodwill

$000
Cost of investment 19,000

Fair value of NCI 2,000
Net assets (W2) (13,000)

———
Goodwill at acquisition 8,000

Impairment (200)
———

Goodwill per SFP 7,800
———

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