Sbr (int/UK) Strategic Business Reporting

(1 mark) 

Goodwill calculation 

The goodwill arising on the acquisition of Lose is therefore: 

 $m 

Cash consideration  

160.0 

Share consideration 

4.5 

Fair value of previous shareholding 

70.0 

NCI at acquisition 

60.0 

Net assets at acquisition 

(265.0) 

 –––––– 

Goodwill at acquisition 

29.5 

 –––––– 

 

(1 mark for OFR calculation) 

 

(Part (a) (i): 11 marks max) 

(ii) 

Additional share capital 

Beth controlled Lose before and after the additional share purchase. Goodwill 

is not recalculated and no profit or loss arises on the transaction in the 

consolidated financial statements. 

(1 mark) 

The transaction is accounted for in equity, as a reduction to the non-

controlling interest. Any difference between this amount and the 

consideration transferred is recognised directly in equity and is attributable to 

the owners of the parent. 

(1 mark) 

 

 

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MO CK A  ANSWER S 

K APLAN P UBLISH IN G