Page 292 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 15

 Sell the initial investment (30%)

 Revalue initial investment
to FV

 G/L’s go to P/L

 Buy the entire investment all at once (80%)

The new FV of the initial investment is included, along with the step acquisition price,
within the cost of investment in GOODWILL.

Cost of investment

(FV of initial + cost of step acquisition) x
NCI at acquisition x
less
FV of Subs net assets at acquisition (x)

––––
GW at acquisition x
––––

Impairment (x)
––––
GW at reporting date x

––––

284