Page 367 - F1 Integrated Workbook STUDENT 2018

Associates

(W3) Goodwill – James
$000
Fair value of investment 805.0
NCI at acquisition 25% × 784 (W2) 196
Fair value of net assets acquired
100% × 784 (W2) (784.0)
———
Goodwill 217.0
———

(W4) Non-controlling interests
$000
Value of NCI at acquisition (W3) 196.0
NCI × post-acquisition reserves 25% × (1,442 – 784) (W2) 164.5
NCI × impairment (W3) (fair value method only) –
–––––
NCI at reporting date 360.5
–––––
(W5) Retained earnings (group reserves)

$000
Tom 1,232.0
James – share of post-acquisition reserves
(75% × (1,442 – 784)) (W2) 493.5
Emily – share of post-acquisition reserves
(30% × (1,008 – 700)) (W2) 92.4
Less: impairments to date (2.8)
–––––––
1,815.1
–––––––

(W6) Investment in associate

$000
Fair value of investment 224.0
Share of post-acquisition profits (W5) 92.4
Less: impairment (2.8)
––––––
313.6
––––––

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