1. The amount of goodwill (gain from a bargain purchase) resulting from the business combination is2. On the date of acquisition, the NCI to appear in the consolidated statement of financial position is: On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On thedate of acquisition, the condensed statement of financial position of P Company and S Company are given asfollows:P Company9,150,000.0013,800,000.00S Company1,830,000.002,760,000.00Current AssetsPlant and EquipmentGoodwillTotal AssetsLiabilitiesP22,950,000.005,700,000.00300,000.00P4,890,000.001,140,000.00Ordinary Share Capital, 100 parShare PremiumRetained EarningsTotal Liabilities & SHE2,400,000.00780,000.00570,000.00P4,890,000.0012,000,000.003,900,000.001,350,000.00P22,950,000.00An appraisal made by an independent appraiser indicated that the fair value of S Company’s assets areP1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combinationamounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to theirshare in identifiable net assets.

According to IFRS 3, Acquisition-related costs incurred by the acquiring company to effect the…

On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On the date of acquisition, the condensed statement of financial position of P Company and S Company are given as follows: S Company 1,830,000.00 2,760,000.00 300,000.00 P4,890,000.00 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 P Company 9,150,000.00 13,800,000.00 Current Assets Plant and Equipment Goodwill Total Assets Liabilities P22,950,000.00 5,700,000.00 12,000,000.00 3,900,000.00 1,350,000.00 P22,950,000.00 Ordinary Share Capital, 100 par Share Premium Retained Earnings Total Liabilities & SHE An appraisal made by an independent appraiser indicated that the fair value of S Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to their share in identifiable net assets.

On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On the date of acquisition, the condensed statement of financial position of P Company and S Company are given as follows: S Company 1,830,000.00 2,760,000.00 300,000.00 P4,890,000.00 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 P Company 9,150,000.00 13,800,000.00 Current Assets Plant and Equipment Goodwill Total Assets Liabilities P22,950,000.00 5,700,000.00 12,000,000.00 3,900,000.00 1,350,000.00 P22,950,000.00 Ordinary Share Capital, 100 par Share Premium Retained Earnings Total Liabilities & SHE An appraisal made by an independent appraiser indicated that the fair value of S Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to their share in identifiable net assets.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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