Hilltop Co acquired 80% of the share capital of Soo CO on 1 January X3 for $875,000. The statements of financial position of the two companies at 31 December X3 were as follows:
STATEMENT OF FINANCIAL POSITION
| Hilltop | Soo | |
| Sundry Assets | 615,000 | 1,015,000 |
| Investment in Soo | 875,000 | |
| 1,490,000 | 1,015,000 | |
| Issued share capital | 800,000 | 450,000 |
| Share Premium account | 200,000 | 100,000 |
| Retained earnings | ||
| As at 1 Jan X3 | 350,000 | 300,000 |
| Profit for X3 | 140,000 | 165,000 |
| 1,490,000 | 1,015,000 |
There have been no changes in the share capital or share premium account of either company since 1 January X3. The fair value of the non-controlling interest on acquisition was $425,000.
What figure for goodwill on consolidation should appear in the consolidated statement of financial position of the Hilltop Group at 31 December X3?
What figure for non-controlling interest should appear in the consolidated statement of financial position of the Hilltop group at 31 December X3?
Suggested solutions:
SOLUTION ONE
| Consideration | 875,000 | |
| Non-Controlling Interest | 425,000 | |
| 1,300,000 | ||
| Ordinary share | 450,000 | |
| Share Premium account | 100,000 | |
| Retained Earnings | 300,000 | |
| 850,000 | ||
| Goodwill | 450,000 |
SOLUTION TWO
| Non-Controlling Interest | 425,000 | |
| 20% share of profit X3 | 33,000 | |
| Answer | 458,000 |
To do the same topic again in ACCA F3 consolidated financial statements
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2015 ACCA F3 CONSOLIDATED FINANCIAL STATEMENTS