France has just acquired a second block of shares in Paris and as result Paris is now a subsidiary of France. France has a policy of valuing the NCI at fair value at the date of acquisition. Details of the first purchase of shares are as follows: Share capital of Paris (GHS1) GHS 20,000 Number of shares acquired last year by France 3,000 Cost of that initial investment by France GHS 6,000 Details at the date of the second purchase of shares are as follows: Fair value of the initial investment in Paris GHS 9,000 Number of extra shares acquired by France in Paris 12,000 Cost of the subsequent investment GHS 25,000 Fair value of the net assets of Paris GHS 10,000 Fair value of the NCI in Paris GHS 9,000 Required: Calculate the goodwill arising.
Question 16
France has just acquired a second block of shares in Paris and as result Paris is now a subsidiary of France. France has a policy of valuing the NCI at fair value at the date of acquisition.
Details of the first purchase of shares are as follows:
|
Share capital of Paris (GHS1)
GHS 20,000 |
Number of shares acquired last year by France
3,000 |
Cost of that initial investment by France
GHS 6,000 |
Details at the date of the second purchase of shares are as follows:
|
Fair value of the initial investment in Paris
GHS 9,000 |
Number of extra shares acquired by France in Paris
12,000 |
Cost of the subsequent investment
GHS 25,000 |
Fair value of the net assets of Paris
GHS 10,000 |
Fair value of the NCI in Paris
GHS 9,000 |
Required:
Calculate the
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