(Becker)Aquisition Method F4-M3/4

Question 1

Non controlling interest NCI =

Answer 1

FV of sub
X
NCI%

Question 2

Goodwill (acquisition)

Answer 2

FV of subs net assets

Question 3

BS FV adjustment

Answer 3

FV net assets - BV net assets

Question 4

IFRS partial goodwill method (calculate NCI)

Answer 4

NCI = FV of subs net identifiable assets x NCI %

Question 5

Subs total (100%) FV - JE

Answer 5

DR. goodwill
Identifiable intangible assets FV
BS FV adjustment
Book value (CAR)

CR. NCI
Investment in sub

Question 6

CAR IN BIG (computer as of the acquisition date)

Answer 6

COMMON STOCK
APIC
RETAINED EARNINGS

• Investment in sub
• NCI

Balance sheet adj .
Identifiable intangible assets FV

= GOODWILL

Question 7

NCI after acquisition date

Answer 7

Beginning NCI
+ NCI share of sub net income
- NCI share of sub dividends
= end NCI

Question 8

Indefinite intangible assets - life

Answer 8

Finite life - amortize

Indefinite life - do not amortize

Question 9

Acquisition with gain

Answer 9

Adjust BS to FV (fv-bv)
Identifiable intangible assets to FV
Gain (credit)

Question 10

IFRS Partial goodwill method (calculate goodwill)

Answer 10

Acquisition cost - (FV of subs net assets * %)