help with Goodwill

potsandclocks

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:

mark130273

nope there isnt any quick way of doing it......

draw the chart and hope for the best !!

Londina

potsandclocks wrote: »

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