Question 14 Last year Ryland acquired a 15% investment in Susan for GHS10,000 and that remains carried at cost in Ryland accounts. This investment now has a fair value of GHS30,000. Ryland has just made a further acquisition of 40% of the shares in Susan for GHS100,000. The net assets of Susan have now been determined at GHS60,000 and the fair value of the NCI at GHS80,000. Ryland has a policy of valuing the NCI at fair value at the date of acquisition. Required: Calculate the goodwill arising on the acquisition of Susan.
Question 14
Last year Ryland acquired a 15% investment in Susan for GHS10,000 and that remains carried at cost in Ryland accounts. This investment now has a fair value of GHS30,000. Ryland has just made a further acquisition of 40% of the shares in Susan for GHS100,000. The net assets of Susan have now been determined at GHS60,000 and the fair value of the NCI at GHS80,000. Ryland has a policy of valuing the NCI at fair value at the date of acquisition.
Required:
Calculate the
Question 15
Truran, the parent, owns 80% of a subsidiary and the NCI in the subsidiary is currently measured at GHS100,000.
- Truran, the parent has just acquired all the remaining shares paying GHS90,000.
- Truran, the parent has acquired 5% of the shares reducing the NCI to 15% paying GHS80,000.
Required:
Calculate the difference arising that will be taken to equity in both situations.
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