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Consolidated financial statements I

Working 3 – Goodwill – full goodwill method

(W3) Goodwill

$
Fair value of consideration paid:

Cash paid at date of acquisition X

Fair value of shares issued X

–––––
X

Fair value of NCI at acquisition (per Question) X (W4)

Fair value of net assets acquired (W2) (X)

–––––
Goodwill at acquisition X

–––––

Key issues

The fair value of consideration paid is either cash paid at the date of
acquisition and/or the fair value of the shares issued by the parent to
acquire the shares in the subsidiary via a share exchange.

If control acquired by a share-for-share exchange, check to ensure that
the parent entity SOFP reflects this. If it does not, the following
accounting entries will be required:

Debit: Cost of investment in subsidiary $X

Credit: Share capital (NV of shares issued) $X

Credit: Share premium (premium on shares issued) $X

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