www.kaplanpublishing.co.uk Section Advanced Issues; complex group structures Question Polar Bear Alpha Beta 80% years ago 70% years ago Gamma Beta's investment in Gamma cost $200,000 at a time when the fair value of the net assets of Gamma were $120,000 From the Alpha group perspective the fair value of the NCI in Gamma at the date of acquisition was $10,000 It is group policy to measure NCI at acquisition at fair value Gamma has post-acquisition profits of $40,000 The goodwill of Gamma has all been impaired The NCI of Beta at the reporting date is $100,000 Required a) Calculate the goodwill of Gamma in the group accounts of Alpha at the reporting date b) Calculate the NCI in the group statement of financial position of Alpha at the reporting date A student's guide to Group Accounts by Tom Clendon, Second Edition, published by Kaplan Publishing www.kaplanpublishing.co.uk Section Advanced Issues; complex group structures Question Brown Bear Three years ago A purchased 60% of the share capital of B for $300,000 when the fair value of the net assets of B were $180,000 and the fair value of its NCI $50,000 The post-acquisition profits of B $20,000 On the same date A and B bought 40% and 30% in C for $60,000 and $45,000 respectively when the fair value of the net assets of C were $40,000 and the fair value of its NCI $10,000 The postacquisition profits of C are $30,000 It is group policy to measure NCI at acquisition at fair value A has share capital of $400,000 and retained earnings of $250,000 Required a) Calculate the goodwill arising b) Prepare the equity section of the A group statement of financial position A student's guide to Group Accounts by Tom Clendon, Second Edition, published by Kaplan Publishing ...www.kaplanpublishing.co.uk Section Advanced Issues; complex group structures Question Brown Bear Three years ago A purchased 60% of the share capital of B... Calculate the goodwill arising b) Prepare the equity section of the A group statement of financial position A student's guide to Group Accounts by Tom Clendon, Second Edition, published by Kaplan... $40,000 and the fair value of its NCI $10,000 The postacquisition profits of C are $30,000 It is group policy to measure NCI at acquisition at fair value A has share capital of $400,000 and retained