DM acquired 80%-of the equity shares in SZ on 1 January 20X1. The consideration for the acquisition consisted of the following:  Cash of $4,800,000 paid on 1 January 20X1  Cash of $2,000,000 payable on 1 January 20X3 (a discount rate of 7% was applied to the value of the liability in the financial statements of DM)  The transfer of 3,000,000 shares in DM with a nominal value of $1 each and a fair value on the acquisition of $2 each. 

What is the fair value of the consideration to be included in the calculation of goodwill arising on the acquisition of SZ?  

Answer rating: 100% (QA)

To calculate the fair value of the consideration to be included in the calculation of goodwill arising on the acquisition of SZ we need to consider th... View the full answer