QUESTION ONE

A parent P acquired 100% of the share capital of subsidiary S on 1 January Year 3.

The net assets of S (total assets minus total liabilities) were valued at TZS 200,000,000 at the date of
acquisition and P paid TZS 200,000,000 to acquire the shares in S.

Required:
Compute goodwill, if any

QUESTION TWO

Required:
Compute goodwill, if any
QUESTION THREE

Required:
Compute Goodwill to be incorporated in the group financial statements
QUESTION FOUR

Required:
Compute Goodwill to be incorporated in the group financial statements
QUESTION FIVE

Compute
I) Goodwill to be incorporated in the group financial statements
II) Non controlling Interest to be incorporated in the group financial statements
III) Would your answer in I and II change if the policy of the company is to value non-controlling
interest at Fair Value
QUESTION SIX

Required
Compute
I) Goodwill to be incorporated in the group financial statements
II) Non controlling Interest to be incorporated in the group financial statements