Cruz obtained a 60% holding in the 100,000 1 shares of Tom on 1 January 2019 when the retained earnings of Tom were 850,000. Consideration comprised 250,000 cash and 400,000 payable on 1 January 2020. Cruz has a cost of capital of 8% DF 0.926. Cruz measures non-controlling interest at fair value. The fair value of the non-controlling interest

Transcribed Image Text:

Cruz obtained a 60% holding in the 100,000 £1 shares of Tom on 1 January 2019 when the retained earnings of Tom were £850,000. Consideration comprised £250,000 cash and £400,000 payable on 1 January 2020. Cruz has a cost of capital of 8% DF 0.926. Cruz measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 2019 was estimated to be £400,000. Calculate the amount of goodwill to be shown in the consolidated statement of financial position as at 31st December 2020 by filling in the blanks: Consideration is calculated as the total of cash £ Blank 1 plus deferred cash £ Blank 2. The amount of NCI at the acquisition date is £ Blank 3. Net assets at the acquisition date is £ Blank 4. Goodwill amount to be presented in the consolidated statement of financial position is £ Blank 5. Blank 1 Blank 2 Blank 3 Blank 4 Blank 5 Add your answer Add your answer Add your answer Add your answer Add your answer

Expert Answer

To calculate the blanks, we can use the following steps: 1. Calculate the total consideration paid b View the full answer