Page 315 - F1 Integrated Workbook STUDENT 2018

Consolidated Statement of Financial Position

Working 3 – Goodwill – Proportion of net assets method

(W3) Goodwill
$
Cost of investment X
Fair value of sub’s net assets at acquisition (% of X
Net Assets (W2)
Fair value of net assets acquired (100) (W2) (X)
–––––
Goodwill at acquisition X
Impairment (X)
–––––
Goodwill at the reporting date X
–––––

Key issues

Cost of investment is not always given in the narrative to the question;
you may need to look to the parents’ statement of financial position.

There may not always be a goodwill impairment, read the question
carefully.

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