goodwill calculation
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I was told you could use the net current asset figure to calculate the goodwill for the cosolidated balance sheet it is just not adding up following the instruction that was given can someone please help. thanks
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goodwill calculation
I have always calculated goodwill by calculating the percentage one company has in the company, then using that percentage working out the Share Premium, Share Capital, P&L and revaluation reserves.<BR><BR>Have you got a question in particular you are stuck on?<BR><BR>Mandy0 -
goodwill calculation
that is how i do it, it takes so much time that is why i am interesting in the way by using the net current assets. thanks for your help though.0 -
goodwill calculation
Simple way to calculate goodwill:<BR><BR>W1) Find Parent's group's % control of subsidiary. The other % is minority interest. <BR><BR>W2) Compute the following little table (bottom half of subsidiary balance sheet):<BR><BR> At Acq (£) At Bal (£) Post Acq<BR> Share Capital 5000 5000 - (Always the same)<BR> Share Premium 2000 2000 - (Always the same)<BR> P @ L 1250 1500 250 (250 been the diff)<BR> Revaluation Reserve 1000 1000 - (Always the same)<BR>
<BR> 9250 9500 250<BR> (W3) (W4) (W5)<BR><BR>(W3) - Goodwill calculation (W4) - Minority Interest = Minority's % * 9500<BR> <BR> Investment Cost xx (w5) - Group Profit<BR> Less: Parents % of Subs Parents Prof xxxx<BR> Net Assets (XX) add: P's %*250 xxxx<BR> == Goodwill<BR><BR><BR><BR>And that's all there is to it. Remember though to take away any goodwill amortisation from the goodwill and group profit calculation.<BR><BR>Try it with one of the exams, it should help!0 -
goodwill calculation
SOrry that makes no sense without the formatting. If you would like me to email you the details contact me:<BR><BR>waldiman22@hotmail.com0