Page 335 - F1 Integrated Workbook STUDENT 2018

Consolidated Statement of Financial Position

(W3) Goodwill

$000
Fair value of investment 1,540
Value of NCI at acquisition (20% × 1030) (W2) 206
Fair value of net assets (NAs) acquired (100% × 1,030) (W2) (1,030)
–––––
Goodwill at acquisition 716
–––––

The fair value of the investment is taken from the parent's SFP. The fair value
of net assets acquired must be taken from the acquisition date column of
(W2).

(W4) Non-controlling interests
$000
Value of NCI at acquisition (as per W3) 206
NCI × post-acquisition reserves 20% × (1,110 – 1,030) (W2) 16
NCI × impairment (W3) (fair value method only) –
––––
NCI at reporting date 222
––––

(W5) Retained earnings
$000
Parent 3,000
Subsidiary (% × post acquisition profits) 80% × (1,110 – 1,030) (W2) 64
Impairment (W3) –
–––––
3,064
–––––

The parent is responsible for its share of the subsidiary's post acquisition
profits only. The parent's percentage holding is multiplied by the change in net
assets from (W2), i.e. the difference between the totals in each column.

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