Page 329 - F1 Integrated Workbook STUDENT 2018

Consolidated Statement of Financial Position

(W3) Goodwill

$000
Fair value of investment 1,100
Value of NCI at acquisition (20% × 900) (W2) 180
Fair value of net assets (NAs) acquired (900)
(100% × 900) (W2)
––––
Goodwill at reporting date 380
––––

The fair value of the net assets acquired will always be 100% because this is
being compared against the fair value of the investment and the NCI value at
acquisition.

(W4) Non-controlling interests

$000
Value of NCI at acquisition (as per W3) 180
NCI × post-acquisition reserves (W2) –
NCI × impairment (W3) (fair value method only) –
––––
NCI at reporting date 180
––––

(W5) Retained earnings
$000
Parent 900
Subsidiary (80% × post acq profits) –
Impairment –
–––––
900
––––

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