Porridge Acquired 70% Of Sugar For €93 Million Several Years Ago When The Fair Value: Accounting Assignment, UCD
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EXERCISE 1
Porridge acquired 70% of Sugar for €93million several years ago when the fair value of the net assets of Sugar amounted to €120million. For the purposes of calculating Goodwill, the non-controlling interest was measured at the acquisition date as a proportion of the value of net assets.
On 1 April 2016, Porridge disposed of its full shareholding in Sugar for consideration of €131 million. The net assets of Sugar were €171 million at1 January 2016 and €183 million on 31 December 2016.
The statements of profit or loss of Porridge and Sugar for the year ended 31 December 2016 were as follows:
