What amount of goodwill will be shown

Assignment Help Accounting Basics
Reference no: EM133010623

Question - Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the share capital and reserves of Company B are:

Share capital $8 million

Retained earnings $2 million

$10 million

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

(b) What amount of goodwill will be shown in the consolidated statement of financial position 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?

(c) Pass the necessary consolidation journal entries and the journal entries to record the non-controlling interest if the non-controlling interest in the acquirer is measured at the non-controlling interest's proportionate share of the acquiree's identifiable net asset

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

Reference no: EM133010623

Questions Cloud

What the depreciation expense : On September 1, 2018, speaker company purchased equipment for $66,000 and installation costs totaled $5,000. What the depreciation expense for 2018
Why is the tourist destination reason the most important : 1. Why is the tourist destination reason the most important? 2. What part does the tourist generating region play in the cycle.
What is the amount of inventory : The cost of goods sold was $9,600. Based on this information, what is the amount of inventory that was purchased by Gomez Company
Calculate the amount of joint cost of each production run : If there are no additional processing costs incurred after the split-off point, calculate the amount of joint cost of each production run allocated to Compod
What amount of goodwill will be shown : What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest
Provide the journal entries necessary to account : The costs of conducting the resale amounted to $10,000. Provide the journal entries necessary to account for the above transactions and events
Research the events in the case study : Research the events in the case study above, and apply flexible budget variance techniques to calculate the variances of Whateva Ltd for direct materials
Briefly explain the accounting assumption of going concern : Briefly explain the accounting assumption of 'going concern'. Why is it of interest to auditors
What the price of the call option : The put is currently selling for $4.54. Assume that a year is 365 days. According to the put-call parity, what the price of the call option

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd