1 Groups and consolidation: an overview

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CHAPTER ROUNDUP 
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CHAPTER 24
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THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
441 
1
Goodwill is the excess of 
consideration
paid
plus fair value of 
non-controlling interest
over fair value of 
net assets acquired. It should be included in the consolidated statement of financial position as an 
intangible asset
.
2
Provision for
unrealised profit
$
Sale price
150% 120,000 
Cost price
100% (80,000) 
Gross profit
50% 
40,000 
Unrealised profit (40,000 

50%) 
20,000 
3
Provision for
unrealised profit
$
Sale price
100% 
12,000 
Cost price
70% 
(8,400) 
Gross profit
30% 
3,600 
Unrealised profit
3,600 
4
 
 
Non-controlling interest
$ 
Fair value of NCI at acquisition 
X 
Plus 
NCI's share of post-acquisition retained earnings (and other reserves)
 
X 
NCI at reporting date 
X 
5
Goodwill 
$ $ 
Fair value of consideration transferred 
28 
Fair value of NCI at acquisition 
5 
Less net acquisition-date fair value of identifiable assets acquired and 
liabilities assumed: 
Ordinary share capital 
10 
Retained earnings at acquisition 
15 
Fair value adjustments at acquisition 
5 
(30) 
Goodwill
3 
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Attempt the questions below from the 
Practice Question Bank 
Qs 90 – 93