Calculate the amount of goodwill arising on consolidation

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Reference no: EM133144851

Question - P acquired 60% of the shares in S on 1 January 2007 when the retained earnings of S stood at P6,000. The fair value of the non-controlling interest at the date of acquisition was P30,000.

On 31 December 2010, the Statements of Financial Position of each of the two companies were as follows:

 

P

S

Current assets

14,000

12,000

Non-current assets

50,000

30,000

Investment in S, at cost

40,000

 

TOTAL ASSETS

104,000

42,000

Current liabilities

10,000

6,000

Share capital - P1 shares

50,000

20,000

Retained earnings

44,000

16,000

TOTAL LIABILITIES AND EQUITY

104,000

42,000

Required -

Calculate the amount of the goodwill arising on consolidation.

Calculate the non-controlling interest at 31 December 2010.

Calculate the retained earnings for inclusion in the Consolidated Statement of Financial Position as 31 December 2010.

Consolidated Statement of Financial Position at 31 December 2010 for the P group.

Reference no: EM133144851

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