P Co acquired control of Sapphire Co on 1 July 20x8 by acquiring 90% of the ordinary
Question:
P Co acquired control of Sapphire Co on 1 July 20x8 by acquiring 90% of the ordinary shares and stock options of Sapphire Co through paying cash of $200,000,000 to the former owners of Sapphire Co. P Co measures noncontrolling interests at fair value. Tax on fair value of identifiable net assets should be recognized at 20%. The information on identifiable net assets of Sapphire Co is shown below:
Required:
1. Determine the amount of non-controlling interests that has to be recognized by P Co as at acquisition date.
2. Determine the amount of goodwill that has to be recognized by P Co as at acquisition date.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Advanced Financial Accounting An IFRS Standards Approach
ISBN: 9781285428765
4th Edition
Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah
Question Posted: