The Season Co. acquired a 70% interest in the Aloha Inc. for P1,960,000 when the fair value of Aloha Inc's identifiable assets and liabilities was P700,000 and elected to measure the non-controlling interest at its share of the identifiable net assets. Annual impairment reviews of goodwill have not resulted in any impairment losses being recognized. Aloha Inc. 's current statement of financial position shows share capital of P100,000, a revaluation reserve of P300,000 and retained earnings of Php 1,400,000. Under IFRS 3, what figure in respect of goodwill should now be carried in Season's consolidated statement of financial position?

The Season Co. acquired a 70% interest in the Aloha Inc. for P1,960,000 when the fair value of Aloha Inc's identifiable assets and liabilities was P700,000 and elected to measure the non-controlling interest at its share of the identifiable net assets. Annual impairment reviews of goodwill have not resulted in any impairment losses being recognized. Aloha Inc. 's current statement of financial position shows share capital of P100,000, a revaluation reserve of P300,000 and retained earnings of Php 1,400,000. Under IFRS 3, what figure in respect of goodwill should now be carried in Season's consolidated statement of financial position?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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