Entity a acquired 80,000 out of 100,000 outstanding ordinary shares of entity b which enabled the former to obtain control of the latter at an acquisition price of p1,000,000. entity a paid p100,000 acquisition related costs and p50,000 indirect costs of business combination. at the date of acquisition, the net assets of entity b are reported at p1,600,000. an asset of entity b is overvalued by p60,000 while one liability is undervalued by p40,000. 5. what is the initial measurement of noncontrolling interest in net assets in the consolidated statement of financial position
Entity a acquired 80,000 out of 100,000 outstanding ordinary shares of entity b which enabled the former to obtain control of the latter at an acquisition price of p1,000,000. entity a paid p100,000 acquisition related costs and p50,000 indirect costs of business combination. at the date of acquisition, the net assets of entity b are reported at p1,600,000. an asset of entity b is overvalued by p60,000 while one liability is undervalued by p40,000. 5. what is the initial measurement of noncontrolling interest in net assets in the consolidated statement of financial position
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entity a acquired 80,000 out of 100,000 outstanding ordinary shares of entity b which enabled the former to obtain control of the latter at an acquisition price of p1,000,000. entity a paid p100,000 acquisition related costs and p50,000 indirect costs of business combination. at the date of acquisition, the net assets of entity b are reported at p1,600,000. an asset of entity b is overvalued by p60,000 while one liability is undervalued by p40,000. 5. what is the initial measurement of noncontrolling interest in net assets in the consolidated statement of financial position
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