fran1008 Registered Posts: 1 New contributor 🐸
Need help with consideration- what does it mean?
I thought it was the cost of investment ( amount the parent company had paid)
When I am calculating the goodwill on practice exams paper I am coming to a complete standstill because I do not know where the figure for consideration has come from.
Please help!


  • visha
    visha Registered Posts: 218 Dedicated contributor 🦉
    Consideration is the price paid for the investment. (purchase of Subsiduary company's shares)

    You will find this on the balance sheet of the parent company under heading - "investment in S company
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