A Ltd is offered three investment proposals: (i) to acquire 70% of the shares of B...

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A Ltd is offered three investment proposals: (i) to acquire 70% of the shares of B Ltd on 3 March 20x3, (ii) to acquire 40% of the shares of B Ltd on 2 February 20x2 and another 30% of the shares of B Ltd on 3 March 20x3, or (iii) to acquire 60% of the shares of B Ltd on 2 February 20x2 and an additional 10% of the shares of B Ltd on 3 March 20x3. Assume that under all the three proposals, the costs of acquisition per share acquired on 2 February 20x2 are the same, and the costs of acquisition per share acquired on 3 March 20x3 are also the same. Which of the following statements is correct? The amount of goodwill on acquisition in the consolidated financial statements under proposal (i) will be the same as that under proposal (ii). The amount of goodwill on acquisition in the consolidated financial statements under proposal (ii) will be the same as that under proposal (iii). The amount of goodwill on acquisition in the consolidated financial statements will be the same under all the three proposals. The amount of goodwill on acquisition in the consolidated financial statements under proposal (i) will be the same as that under proposal (iii). None of the listed choices. A Ltd is offered three investment proposals: (i) to acquire 70% of the shares of B Ltd on 3 March 20x3, (ii) to acquire 40% of the shares of B Ltd on 2 February 20x2 and another 30% of the shares of B Ltd on 3 March 20x3, or (iii) to acquire 60% of the shares of B Ltd on 2 February 20x2 and an additional 10% of the shares of B Ltd on 3 March 20x3. Assume that under all the three proposals, the costs of acquisition per share acquired on 2 February 20x2 are the same, and the costs of acquisition per share acquired on 3 March 20x3 are also the same. Which of the following statements is correct? The amount of goodwill on acquisition in the consolidated financial statements under proposal (i) will be the same as that under proposal (ii). The amount of goodwill on acquisition in the consolidated financial statements under proposal (ii) will be the same as that under proposal (iii). The amount of goodwill on acquisition in the consolidated financial statements will be the same under all the three proposals. The amount of goodwill on acquisition in the consolidated financial statements under proposal (i) will be the same as that under proposal (iii). None of the listed choices.

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