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Separate and Consolidated Financial Statement - Sock Aquisition
Separate and Consolidated Financial Statement - Sock Aquisition
Separate and Consolidated Financial Statement - Sock Aquisition
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RULES
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II. The acquisition-date recognized fair value amount of the identifiable assets
acquired and liabilities assumed.
ACQUISITION METHOD
A. Date of acquisition
B. Subsequent to Date of Acquisition
C. Transactions Between Affiliated Companies
⮚ Intercompany sales of inventory
⮚ Intercompany sales of fixed assets
⮚ Receivables and payable, Intercompany loans
Company G acquires 80% of Company Y for P10 million,
carrying value of company Y net assets at time of acquisition
being P6 million and fair value of these net identifiable assets
being P8 million.
1. Goodwill arising on consolidation is to be valued on the
proportionate basis or “Partial Goodwill” is?
2. The amount of non-controlling interest arising on
consolidation is to be valued on the proportionate basis or
“Partial” goodwill is?
3. The amount of goodwill arising on consolidation is to be
valued on the full (fair value) basis or “Full/Gross-up”
Goodwill?
4. Using the same information in No. 1, the amount of non-
controlling interest arising on consolidation is to be valued
on the full (fair value) basis or “Full/Gross-up” goodwill?
Let’s Solve!
Entity Subsidiary has 40% of its share publicly traded on an exchange.
Entity Parent purchases the 60% non-publicly traded shares in one
transaction, paying P6,300,000. Based on the trading price of the
shares of Entity Subsidiary at the date of gaining control a value of
P4,000,000 assigned to the 40% NCI, indicating that Entity
Subsidiary’s identifiable net assets is P7,000,000 and a carrying value
of P5,000,000.
1. Goodwill arising on consolidation is to be valued on the
proportionate basis or “Partial Goodwill” is?
2. The amount of non-controlling interest arising on consolidation
is to be valued on the proportionate basis or “Partial” goodwill
is?
3. The amount of goodwill arising on consolidation is to be valued
on the full (fair value) basis or “Full/Gross-up” Goodwill?
4. Using the same information in No. 1, the amount of non-
controlling interest arising on consolidation is to be valued on
the full (fair value) basis or “Full/Gross-up” goodwill?
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