Determine what amount shown in the consolidated statement

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Reference no: EM132727237

William Company acquires 70 per cent of Bill Company for a cash price of $10,000,000 when the share capital and reserves of Bill Company are:

Share capital $8,000,000
Retained earnings $2,000,000
TOTAL $10,000,000

Problem (a) What amount will be shown in the consolidated statement of financial position for goodwill pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at fair value?

Problem (b) What amount will be shown in the consolidated statement of financial position for goodwill pursuant to AASB 3, assuming that any non-controlling interest in the acquirer is measured at the non-controlling interest's proportionate share of the acquiree's identifiable net assets?

Problem (c) What are some of the implications of allowing the group to have two options in accounting for goodwill on consolidation?

Reference no: EM132727237

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