Goodwill calculations

Question 1

NCI Calculation

@ Acquisition

Answer 1

(Net assets*non-controlling amount%)

Question 2

NCI Calculation @Disposal

Answer 2

NCI% @ Acquistion+(Change in NCI%*profit)

Question 3

Acquiring new business

Answer 3

Calculating goodwill on acquisition at year end
FV consideration
+FV NCI
-FV Net assets (SC+NA+Fair value adjustment)
-Impairment

Question 4

Step acquisition

Answer 4

\+FV of consideration
\+FV of previous holding
\+FV of NCI
-FV of net assets
-Deferred Tax liabitiy (Tax rate x (Profit))

Question 5

Disposal

From controlling to associate disposal

Answer 5

First calculate:
Month x profit
Month x OCI
Proceeds from sale of shares
+FV of remaining interest
-(Good will at disposal) (Same as goodwill @acquisition)
-(Net assets at disposal)(Net Asset +Month profit +Month OCI)
+NCI at disposal (NCI@acq + (NCI %x (Month profit+Month OCI)
=P/L on disposal

Question 6

Disposal

Answer 6

From controlling to controlling
Proceeds from sale of shares
- change in NCI ((Net assets + Goodwill)x% change of NCI)