On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On the date of acquisition, the condensed statement of financial position of P Company and S Company are given as follows: S Company 1,830,000.00 2,760,000.00 300,000.00 P4,890,000.00 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 P Company 9,150,000.00 13,800,000.00 Current Assets Plant and Equipment Goodwill Total Assets Liabilities P22,950,000.00 5,700,000.00 12,000,000.00 3,900,000.00 1,350,000.00 P22,950,000.00 Ordinary Share Capital, 100 par Share Premium Retained Earnings Total Liabilities & SHE An appraisal made by an independent appraiser indicated that the fair value of S Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to their share in identifiable net assets.
On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On the date of acquisition, the condensed statement of financial position of P Company and S Company are given as follows: S Company 1,830,000.00 2,760,000.00 300,000.00 P4,890,000.00 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 P Company 9,150,000.00 13,800,000.00 Current Assets Plant and Equipment Goodwill Total Assets Liabilities P22,950,000.00 5,700,000.00 12,000,000.00 3,900,000.00 1,350,000.00 P22,950,000.00 Ordinary Share Capital, 100 par Share Premium Retained Earnings Total Liabilities & SHE An appraisal made by an independent appraiser indicated that the fair value of S Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to their share in identifiable net assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. On the date of acquisition, the NCI to appear in the consolidated
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