P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date the share capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted to R800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests
P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date the share capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted to R800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date the share capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the
Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of the acquiree’s net identifiable assets
How much will be recognised as
Select one:
a. R300 000
b. R200 000
c. R240 000
d. R800 000
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