Group Accounts

Question 1

When is a parent company considered to have control over a subsidy

Answer 1

Own more than 50% of voting rights

Question 2

Formula for goodwill

Answer 2

Good will = consideration - identifiable net assets at fair value

Question 3

What if the parent only owns 80% of equity

Answer 3

Non controlling interest owns 20%

Question 4

Calculation of goodwill with NCI

Answer 4

Consideration + non controlling interest - indeitifiable net asssets