H plc is a holding company with a 70% interest in its subsidiary S plc. The following is an extract from the Statements of Financial Position of the two companies as at the end of their most recent financial year: Ordinary shares of £1 Retained earnings H plc £m 211 157 S plc £m 53 43 H plc acquired its interest in S plc for £303m when S plc's retained earnings were £47m and the fair value of the non-controlling interest in S plc was £49m. At the date of acquisition all the assets of S plc were agreed to be reported at their fair value. However, there were unrecognised internally generated patents and trademarks in S plc with a fair value of £19. Calculate the amount for goodwill arising on the acquisition of S plc. Enter your answer as £m correct to 1 decimal place.

H plc is a holding company with a 70% interest in its subsidiary S plc. The following is an extract from the Statements of Financial Position of the two companies as at the end of their most recent financial year: Ordinary shares of £1 Retained earnings H plc £m 211 157 S plc £m 53 43 H plc acquired its interest in S plc for £303m when S plc's retained earnings were £47m and the fair value of the non-controlling interest in S plc was £49m. At the date of acquisition all the assets of S plc were agreed to be reported at their fair value. However, there were unrecognised internally generated patents and trademarks in S plc with a fair value of £19. Calculate the amount for goodwill arising on the acquisition of S plc. Enter your answer as £m correct to 1 decimal place.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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