Group SFP - Goodwill - ACCA Financial Reporting (FR)

Group SFP - Goodwill - ACCA Financial Reporting (FR)
Free lectures for the ACCA Financial Reporting (FR) Exam
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[@saidj1625]

Thank you so much, I have been trying to understand this for days. It is so much clearer to me now.

[@aaroacademy]

Excellent accounting training video. Greatly appreciated!

[@lherath8658]

Thank you! I have been finding it hard to understand this, wish my lecturers were as good as you!!

[@emmaogiaga]

Thanks so much. Preparing for my degree exams and it's very helpful.

[@alchemistpat]

Thank you soooo much! This was awesome, so clear!!!

[@dhojeyktm2197]

Really good video. Thank you!

[@prangupta5337]

Thank you so much! Just a quick qs, for the fair value method, why is NCI at acq £52,000, and not 25% of it (13000). Are we meant to add the whole £ share in issue amount?

[@vikumliyanage4531]

Best example for 2 methods

[@sitalidavy8017]

This is awesome

[@hirutzewdie4765]

Thank you

[@kidstoysdrawings1605]

I have a scenario: assuming that in the next year the Non-controlling Interest (NCI) remains at $52,000 and the parent decides to buy the NCI at $55,000, how would you account for the excess paid of $3,000? Will it be recognized as additional goodwill?

[@fiazahmad2059]

Yes, you will recognize the 3000 as Goodwill because that is purchased goodwill, not internally generated Goodwill under IAS 38.

[@STARKING10]

I like that👍

[@kennethkalonga232]

Good

[@heshamlotfy998]

Thanks

[@amitkashyap7951]

nyccc

[@itsnavikumar1]

If there exists Gen reserve and retained earnings at acquisition date, then NCI will include the 25% of both Gen reserve and retained earnings...? correct me if I am wrong.

[@user-sm1fh1iy4p]

yes

[@z.jz.j7254]

If a good will is negative means the parant investment is lower of in subsidiary asset so what happend next reply

[@opentuition]

Please ask in the free Ask the Tutor Forum on our website. Our tutors do not monitor comments here but always answer questions in our Ask the Tutor Forums.

[@z.jz.j7254]

Ok thanks for reply give me a saggestion

[@shekujalloh551]

@@z.jz.j7254 I don’t think Goodwill is supposed to be negative based on other definitions which states Goodwill is the excess paid by the parents over the actual sub net asset worth

[@kyffhazard6823]

@@shekujalloh551 However, if there really happens to be Negative Goodwill, it is considered to be an "Unexpected Gain", and will be accounted for in the P&L in an account called "Gain on Bargain Purchase"

[@shekujalloh551]

@@kyffhazard6823 thank you very much