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6 Cards in this Set
- Front
- Back
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W1 Group Structure |
Amount of Ordinary Share Capital ownership required: 50%+ = Subsidiary 20%+ = Associate |
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W2 Goodwill |
Consideration (Cost of Investment) + NCI (Net assets acquired x the share % we do Not own)
LESS: Net assets acquired: Ordinary Share Capital Pre-acquisition Retained Earnings Fair value Adjustment
= Goodwill at acquisition. - Impairment = W2 Goodwill
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W3 Investment in Associate |
Cost + Group share of Associate [W4] (Share of Retained Earnings) |
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W4 Retained Earnings |
P S. A RE as shown in question Less: Pre-acquisition RE PUP [W6] Goodwill impairment
Add: Group share of S Add: Group share of A
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W5 Non-Controlling Interest |
At acquisition [W2] (NCI figure in Goodwill) + NCI share of Subsidiary (Share of Retained Earnings we don't own) |
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W6 Provision for unrealised profit (PUP) |
£'000s. % Revenue Cost of Sales Gross Profit (usually in a note to the accounts) PUP = Original Cost x Mark up x Goods left Look at who sold to who and adjust the sellers RE |
