help with Goodwill

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potsandclocks
potsandclocks Registered Posts: 15 New contributor 🐸
Hi Can anybody help , I am getting in a mess with unit 11 and working out goodwill , Retained earnings and Minority interest , is there an easier way of doing it and setting it out than the examiners answers as that seems complicated?? Ta very much:thumbup1:

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  • mark130273
    mark130273 Registered Posts: 4,234 Beyond epic contributor 🧙‍♂️
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    nope there isnt any quick way of doing it......

    draw the chart and hope for the best !!
  • Londina
    Londina Registered Posts: 814 Epic contributor 🐘
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    Hi Can anybody help , I am getting in a mess with unit 11 and working out goodwill , Retained earnings and Minority interest , is there an easier way of doing it and setting it out than the examiners answers as that seems complicated?? Ta very much:thumbup1:

    I usually follow these 4 steps in order to complete a consolidated balance sheet:

    1) calculate new equity of sub company in case there is a revaluation
    2) calculate goodwill (investement -(equity sub company @ acquisition date x any % of ownership)
    3) calculate minor interest (equity sub company @ balance sheet date x % of the remain ownership of third parties)
    4) calculate updated retained earning of the parent company (actual retained earning x difference sub company retained earnings x % ownership)

    By following this method, I then complete straight away the task

    Hope it helps
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