Acquirer Limited purchased 75 per cent of Subby Limited for $45 000.The fair value of identifiable assets was $95 000,and the fair value of liabilities and contingent liabilities amounted to $47 000.According to AASB 10,what would be the amount of 'goodwill allocated to non-controlling interests of Subby Limited'?

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Quizplus · Accepted Answer

The amount of goodwill allocated to non-controlling interests is calculated as follows:Goodwill = Fair value of identifiable assets - Fair value of liabilities and contingent liabilities - Purchase priceGoodwill = $95,000 - $47,000 - $45,000Goodwill = $3,000The non-controlling interests hold 25% of the shares in Subby Limited, so the amount of goodwill allocated to non-controlling interests is 25% of $3,000 = $750.

Acquirer Limited Purchased 75 Per Cent of Subby Limited for $45