On January 1, 20x1, FORTITUDE Co. acquired 15% ownership interest in ENDURANCE, Inc. for ₱400,000. The investment was accounted for under PFRS 9. From 20x1 to the end of 20x3, FORTITUDE recognized net fair value gains of ₱200,000. On January 1, 20x4, FORTITUDE acquired additional 60% ownership interest in ENDURANCE, Inc. for ₱3,200,000. As of this date, FORTITUDE has identified the following:The previously held 15% interest has a fair value of ₱720,000. ENDURANCE’s net identifiable assets have a fair value of ₱4,000,000. FORTITUDE elected to measure non-controlling interests at the non-controlling interest’s proportionate share of ENDURANCE’s identifiable net assets.The previously held interest was initially classified as FVPL. How much is the goodwill (gain on bargain purchase)?
On January 1, 20x1, FORTITUDE Co. acquired 15% ownership interest in ENDURANCE, Inc. for ₱400,000. The investment was accounted for under PFRS 9. From 20x1 to the end of 20x3, FORTITUDE recognized net fair value gains of ₱200,000. On January 1, 20x4, FORTITUDE acquired additional 60% ownership interest in ENDURANCE, Inc. for ₱3,200,000. As of this date, FORTITUDE has identified the following:The previously held 15% interest has a fair value of ₱720,000. ENDURANCE’s net identifiable assets have a fair value of ₱4,000,000. FORTITUDE elected to measure non-controlling interests at the non-controlling interest’s proportionate share of ENDURANCE’s identifiable net assets.The previously held interest was initially classified as FVPL. How much is the
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