e Sylvia Company acquired a 70% interest in The Clarke Company for 1,420,000 when the fair value of Clarke’s identifiable assets and liabilities was P1,200,000. Sylvia acquired a 65% interest in The Homer Company for P300,000 when the fair value of Homer’s identifiable assets and liabilities was P640,000. Sylvia measures non-controlling interest at the relevant share if the identifiable net asset at the acquisition date. Neither Clarke nor Homer has any contingent liabilities at the amounts in their financial statements. Annual impairment reviews have not resulted in any impairment losses being recognized. Under PFRS 3 Business Combinations, what is the goodwill that should be included in Sylvia’s consolidated statement of financial position?
The Sylvia Company acquired a 70% interest in The Clarke Company for 1,420,000 when
the fair value of Clarke’s identifiable assets and liabilities was P1,200,000. Sylvia acquired a
65% interest in The Homer Company for P300,000 when the fair value of Homer’s identifiable
assets and liabilities was P640,000. Sylvia measures non-controlling interest at the relevant
share if the identifiable net asset at the acquisition date. Neither Clarke nor Homer has any
reviews have not resulted in any impairment losses being recognized.
Under PFRS 3 Business Combinations, what is the
consolidated
a. 580,000
b. 0
c. 600,000
d. 540,000
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