Page 468 - F2 Integrated Workbook STUDENT 2019
P. 468
Chapter 19
Example 13.3
The IHA is calculated by taking the Sub’s NCI% × cost of investment in SS.
IHA = 20% × 900k = 180k
The impact to goodwill will be as follows:
Goodwill of SS
$000
Investment (incurred by S) 900
Less: IHA (20% × 900) (180)
––––––
Investment by P (80% × 900) 720
Value of NCI at acquisition X
Less fair value of net assets of SS at acquisition (X)
––––––
Goodwill at acquisition X
––––––
The impact to the NCI will be as follows:
NCI of S
$000
Value of S's NCI at acquisition X
Less IHA (180)
NCI% of S's post-acquisition reserves X
––––––
X
––––––
460
