The following statements of financial position have been prepared at 31 December 20X8. High Low $ $
Question:
The following statements of financial position have been prepared at 31 December 20X8.
High Low
$ $
Non-current assets:
Property, plant & equipment 150,000 50,000
Investment: Shares in Jones 85,000
Current assets 150,000 90,000
385,000 140,000
Equity: Ordinary $1 shares 120,000 50,000
Share premium 60,000 15,000
Retained earnings 110,000 40,000
290,000 105,000
Current liabilities 95,000 35,000
385,000 140,000
High Co. acquired 40,000 ordinary $1 shares in Jade Co on 1 January 20X8, when Jones’ retained earnings stood at $10,000 and its share premium was $20,000. On this date, the fair value of the 20% noncontrolling shareholding in Jones was $10,000. The Dickens Group uses the fair value method to value the noncontrolling interest.
Required
A Calculate Goodwill at acquisition & Calculate Group Reserves
B. Prepare Consolidated Statement of Financial Position, showing goodwill and Non– Controlling Interest
Expert Answer:
A Calculation of Goodwill at Acquisition To calculate the goodwill at acquisition we need to determine the fair value of the net assets acquired and c... View the full answer
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
