BLACKPINK Company acquired a 70% interest in the LISA Corp. for P1,420,000 when the book value of LISA’s identifiable assets and liabilities was P1,200,000; land was undervalued by P200,000. BLACKPINK acquired a 65% interest in the MANDU Inc. for P300,000 when the fair value of MANDU’s identifiable assets and liabilities was P640,000. BLACKPINK measures non-controlling interest at the relevant share of the identifiable net assets at the acquisition date. Neither LISA nor MANDU has any contingent liabilities at the amounts in their financial statements. Annual impairment reviews have not resulted in any impairment losses being recognized. Requirement: Under PFRS 3, compute for the goodwill that should be included in BLACKPINK’s consolidated statement of financial position.
BLACKPINK Company acquired a 70% interest in the LISA Corp. for P1,420,000 when the book value
of LISA’s identifiable assets and liabilities was P1,200,000; land was undervalued by P200,000.
BLACKPINK acquired a 65% interest in the MANDU Inc. for P300,000 when the fair value of
MANDU’s identifiable assets and liabilities was P640,000. BLACKPINK measures non-controlling
interest at the relevant share of the identifiable net assets at the acquisition date. Neither LISA nor
MANDU has any
impairment reviews have not resulted in any impairment losses being recognized.
Requirement:
Under PFRS 3, compute for the
statement of financial position.
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