请教F7的讲师celilia --Year 2009 interest, training, example, little, method

angelpan

Dear Celilia,

     I am a little puzzled at the method to caculate the goodwiil.

     In your year 2009 training notes, there is a new way to caculate the goodwill. But in the example (Draft SFPs of Piper and Swans on 31 December 20X1, 

Chapter 5---- 'non-controlling interest' part), why did it still show the method as below?

    (W3) Goodwill

                                                                   $000

    Cost of investment                                     110

    for:

    80% NA@ acquisition                                  (88)

   (80%X $110(W2)) 

     Goodwill                                                    22

 

     Can I use the method shown on BPP text book as following?

    consideration transferred                            110

  Less: Non-Controlling interest at acquisition    22

    Net asssets of Swans at acquisition:

       Ordinary share                                        100

       Retained earnings at acquisition                 10

    Goodwill                                                     22

      

 

 If the latter one is ok, it will not cause me to feel uncertain that which method I should choose.

 

 In addition,  which press of the book do you adopt, BPP?

 

  So much to disturb you.  I'm looking forward to receving your reply ASAP.

  Thanks a lot!

ceciliah

 Our class is based on FTC book. In fact After Dec 08 it's required to use the new way to calculate goodwill. Also there will be clear requirements of NCI in question description.