Question
Company Y acquires 80% of Z for consideration ₹4,00,000. Fair value of identifiable net assets of Z = ₹3,50,000. Calculate goodwill on consolidation.
Solution
Goodwill (partial method) = Consideration Transferred − (Acquirer's Share of Fair Value of Identifiable Net Assets) = 4,00,000 − (80% × 3,50,000) = 4,00,000 − 2,80,000 = ₹1,20,000.
More Accounts Questions
- As per Section 127 of the Companies Act, 2013, in relation to punishment for failure to distribute dividends, where a dividend has been declared by a compa...
- What is the primary objective of capital budgeting?
- Which metric is commonly used to evaluate a company’s operational efficiency?
- Which of the following statements about consolidated goodwill is true?
- Ajay draws a bill on Vinay for ₹ 60,000. Vinay accepts it. Ajay endorses it to Chintu in settlement of ₹ 70,000 at 2% discount and the balance in cash. The...
- Who is considered a Beneficial Owner under RBI KYC norms?
- In case of redemption of debentures, Debt/equity ratio will:
- In India, the primary legal framework for Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) is provided by _________.
- Which intangible asset must be tested for impairment annually regardless of indicators ?
- Under which act does the Securities and Exchange Board of India (SEBI) operate to regulate the securities market in India?
