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Computation of Goodwill
Computation of Goodwill
Computation
Consideration Transferred P 560,000
Add: Non-controlling interest in the acquire (fair P 600,000 x 30% 180,000
value)
Previously held equity interest in the acquiree 0
Total 740,000
Less: Fair value of net identifiable assets acquired Total FV of asset less Liabilities
(20,000+20,000+100,000+10,000+540,000-90,000) 600,000
Goodwill P 140,000
Elimination Entries: (To eliminate investment in subsidiary and recognize the changes in fair value of the asset and goodwill)