FAR$5-$ Chapter $6$: Business Combination and Introduction to CFS

How to determine if an acquirer have control over an acquiree?

What is meant by variable returns?

Describe non$-$controlling interest.

$AB$ Bhd pays RM$300$ million for $75\%$ of $CD$ Bhd which has net assets with a fair value of RM $210$

million. The directors of $AB$ Bhd have determined the fair value of the $NCl$ at the date of

acquisition was RM$33$ million. Calculate the goodwill on acquisition using full goodwill

method.

AB Bhd pays RM$300$ million for $75\%$ of CD Bhd which has net assets with a fair value of RM $210$

million. Calculate the parent's share of the goodwill on acquisition.