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ove - Dapat yung pinurchase 1. DETERMINE GOODWILL Cost of Investment PP of Cash PP of Stocks @FV PP of NCA Contingent Consideration FMV of NCI FMV of Previously Held Securities COI (Cost of Investment) IF:
vs.
FMV of NIA Assets excluding GW @FMV Less: Liabilities @FMV FMV of NIA
COI > FMV = Goodwill COI < FMV = Income from Acquisition
2 Methods of getting FMV of NCI 1. Proportionate Share Basis CNCINA (Partial Goodwill Method) 2. Fair Value Method Silent / Pag sinabi na measured at FV a. Given b. Assume c. Check i. Assumed Value = Purchase Price x NCI% CI% ii. CNCINA = FMV of NIA x NCI% 2. WORKING PAPER ENTRIES (1) Eliminate SHE (2) Update Assets of Subsidiary to FMV (3) Recognize Goodwill
Proportionate Share Basis FMV of NCI 1. Given Fair Market Value Method 2. Assumed CNCINA
Whichever is higher.
3. Check CNCINA w/c ever is higher. (Given vs. Check; Assumed vs. Check)
Parent
CNCINA
Parent
Determination and Allocation Schedule GOODWILL CI COI PP in Cash FMV - Less: FMV of NIA (CI%) xx