On January 1, 20X1, Sit Co. acquired 75% controlling interest in Stand Co. for P1,000,000. On the said  date, the fair value of Stand's identifiable net assets is P800,000. Sit Co. incurred transaction costs of P100,000 on the acquisition. 

Required: 

Determine the following:

a. The goodwill if Sit Co. uses the full IFRS and the measure non-controlling interest shall be measured on a proportionate basis.

b. The goodwill if Sit Co uses the IFRS for SMEs.

c. The goodwill on December 31, 20X1 under full IFRS and IFRS for SMEs.

Answer rating: 100% (QA)

a Under full IFRS the goodwill is calculated as follows Consideration transferred P1000000 P100000 transaction costs P1100000 Noncontrolling interest ... View the full answer