Illustration 1: Determination of goodwillPCA Limited acquires 80% of B Limited by paying cash consideration of 120 crore. The fair value ofnon-controlling interest on the date of acquisition is 30 crore. The value of subsidiary'sNCLidentifiable net assets as per Ind AS 103 is 130 crore. Determine the value of goodwill and passthe journal entry.NA

Goodwill can be determined by: 1)Fair value method 2)Proportionate share method Non-controlling…

PC Illustration 1: Determination of goodwill NCZ A Limited acquires 80% of B Limited by paying cash consideration of 120 crore. The fair value non-controlling interest on the date acquisition 30 crore. The value of subsidiary identifiable net assets as per Ind AS 103 is 130 crore. Determine the value of goodwill and pas the journal entry. N

PC Illustration 1: Determination of goodwill NCZ A Limited acquires 80% of B Limited by paying cash consideration of 120 crore. The fair value non-controlling interest on the date acquisition 30 crore. The value of subsidiary identifiable net assets as per Ind AS 103 is 130 crore. Determine the value of goodwill and pas the journal entry. N

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Illustration 1. Measuring Goodwill/Gain on Bargain PurchaseOn January 1, 2021, Amahan Co. acquired all of the assets and assumed all of the liabilities of Anak, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of Anak acquired by Amahan are shown below: On the negotiation for the business combination, Amahan Co. incurred the followingtransaction costs: P25,000.00 for legal fees; P 75,000.00 for accounting fees and P 50,000.00 for consultancy fees. 1. How much is the goodwill (gain on bargain purchase) on the businesscombination?a. (465,000.00)b. 185,000.00c. (190,000.00)d. 310,000.00
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