in North Carolina
TutorialHam plc and Burg plc financial position.
Ham plc acquired 100% of the common shares of Burg plc on 1 January 20X0 and gained control. At that date the statements of financial position of the two companies were as follows:
Notes:
1 The fair value is the same as the book value.
2 15,000 of the negative goodwill arises because the net assets have been acquired at below their fair value and the remainder covers expected losses of 3,000 in the year ended 31/12/20X0 and 2,000 in the following year.
Required:
(a) Prepare a consolidated statement of financial position for Ham plc as at 1 January 20X0.
(b) Explain how the negative goodwill will be treated.
Attachments:
ham_plc_acquired_100.docx
AnswerAccounting help
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