Page 454 - F2 Integrated Workbook STUDENT 2019
P. 454
Chapter 19
Chapter 11
Example 11.1
Proportion of net Fair value
assets method (i) method (ii)
$000 $000
Cost of investment 2,220 2,220
NCI - Proportionate (20% × 1,850 (W2)) 370
NCI - Fair value (given) 462.5
Less: S's net assets at acquisition (W2) (1,850) (1,850)
–––––– –––––––
Goodwill at acquisition 740 832.5
–––––– –––––––
(W1) Group structure - Silvio acquired 80% of Carmela on 1 April 20X8. NCI =
20%
(W2) Net assets of subsidiary
Acquisition
$000
Share capital 370
Retained earnings 1,480
–––––
1,850
–––––
446
