On 1 April 2014, Company A recently acquired 75% of the equity shares of Company B. Company B had total shares outstanding of 100,000 of a face value of Rs. 10. It had also issued convertible debentures. Company B had issued 20,000 such debentures and each debenture was convertible into 2.5 equity shares of a face value of Rs. 10. The debentures were convertible into equity shares before any company acquired a majority stake in Company B. Further, Company B had made profits of INR 10 Crore in the financial year ended 31 March 2014, which represented only 5% of its total reserves on the balance sheet as on April 1, 2014. Company A on the other hand had made a profit of INR 100 Crore for the financial year ended 31 March 2014. Company A’s outstanding and paid up share capital was INR 200 Crores and its reserves and surplus were INR 500 Crore. Company A acquired Company B by paying a consideration of INR 450 Crore. Using the above information, please calculate: Goodwill on Consolidation Minority Interest Company A’s Share in Consolidated Profits Minority Share in Consolidated Profits
On 1 April 2014, Company A recently acquired 75% of the equity shares of Company B. Company B had total shares outstanding of 100,000 of a face value of Rs. 10. It had also issued convertible debentures. Company B had issued 20,000 such debentures and each debenture was convertible into 2.5 equity shares of a face value of Rs. 10. The debentures were convertible into equity shares before any company acquired a majority stake in Company B.
Further, Company B had made profits of INR 10 Crore in the financial year ended 31 March 2014, which represented only 5% of its
Company A acquired Company B by paying a consideration of INR 450 Crore. Using the above information, please calculate:
Goodwill on Consolidation- Minority Interest
- Company A’s Share in Consolidated Profits
- Minority Share in Consolidated Profits
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