On 1 January 2017, P Ltd paid £540,000 to acquire 55% of the ordinary share capital of S Ltd. The equity of S Ltd on that date consisted of ordinary share capital of £300,000 and retained earnings of £250,000. Goodwill arising on consolidation has suffered an impairment loss of 30% between 1 January 2017 and 31 December 2020. The goodwill figure which should be shown in the consolidated statement of financial position at 31 December 2020 is: a) £71,250 b) £166,250 c) £100,000 d) £550,000
On 1 January 2017, P Ltd paid £540,000 to acquire 55% of the ordinary share capital of S Ltd. The equity of S Ltd on that date consisted of ordinary share capital of £300,000 and retained earnings of £250,000. Goodwill arising on consolidation has suffered an impairment loss of 30% between 1 January 2017 and 31 December 2020. The goodwill figure which should be shown in the consolidated statement of financial position at 31 December 2020 is: a) £71,250 b) £166,250 c) £100,000 d) £550,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q) On 1 January 2017, P Ltd paid £540,000 to acquire 55% of the ordinary share capital of S Ltd. The equity of S Ltd on that date consisted of ordinary share capital of £300,000 and
2017 and 31 December 2020. The goodwill figure which should be shown in
the consolidated
a) £71,250
b) £166,250
c) £100,000
d) £550,000
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