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Chapter 15
Example 15.5
Spider has owned 90% of Mars for many years. It has just sold 25% of Mars's
share capital for $400,000.
It is group policy to measure NCI at fair value at the date of acquisition and the
fair value of the NCI in Mars at this date was $140,000.
Mars's net assets were $800,000 at acquisition and are $1,400,000 at the date
of disposal.
Goodwill arising on the acquisition of Mars was $700,000 and there has been
no impairment to date.
Required:
Show the journal entry that would record the purchase of the additional
shares in the consolidated financial statements of the Spider Group.
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