Hello everyone, i've got some troubles with one of a learning examples of F7 (ACCA Financial reporting).
Calculation of "Goodwill" (screenshot #3).
Why did they use only "Share capital" in their calculations? Because NCI part also includes "Retained Earning", so if we are saying that we are calculating "Goodwill" using "Net Assets" as basis we have to include all figures, not only "Share Capital".
Learning example and answers are attached.
Appreciate your help.
Update: Now i understand. This topic can be closed.
Calculation of "Goodwill" (screenshot #3).
Why did they use only "Share capital" in their calculations? Because NCI part also includes "Retained Earning", so if we are saying that we are calculating "Goodwill" using "Net Assets" as basis we have to include all figures, not only "Share Capital".
Learning example and answers are attached.
Appreciate your help.
Update: Now i understand. This topic can be closed.
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