Chapter 16.1 Increases in Shareholding
Soni has an issued ordinary share capital of 100,000,000 shares of RM1 each. Gaga acquired the shares in Soni as follows:
Shares Acquired Cost Date of Acquisition Reserves of S
15,000,000 RM30,000,000 1 January x1 RM40,000,000
60,000,000 RM210,000,000 1 January x6 RM100,000,000
On 1 January x6 the fair value of one ordinary share of Soni was RM3.
Required:
(i)Compute the goodwill on the business combination where :
(a) the NCI is measured on proportion to the fair value of the identifiable net asset of Soni.
(b) NCI is measured at fair value.
(ii) Discuss the accounting treatment if Gaga account for its investments:
(a) fair value through profit or loss.
(b) as available for sale.
(c) at cost.
Chapter 16.2
Halley acquired the shares as follows:
Date of Shares Cost FV 1 Jan x7 FV 1 Jan x9 FV of net asset of
acquisition acquired RM RM RM Swift (RM)
1 Jan x5 50,000 120,000 150,000 210,000 500,000
1 Jan x7 50,000 150,000 150,000 210,000 700,000
1 Jan x9 100,000 480,000 480,000 850,000
Swift's issued ordinary share capital consist of 250,000 ordinary shares of RM1 each
Halley retains all its investments at cost. Halley had no significant influenced over Swift till 1 January x7.
Fair value of the ordinary shares of Swift on 1 January x7 was RM3 each on 1 January x9 was RM4.20 each.
Required:
(i) Computed the goodwill on the business combination where:
(a) the NCI is measure in proportion to the fair value of the identifiable net asset of Swift.
(b) NCI is measure at fair value.
Chapter 16.6
Question please refer to text book
Company and Group Financial Reporting (7th edition)
Chapter 16.7
