Acquisition on Goodwill

0MEMOMEMO
Finance
Name of the Student:
Name of the University:
Author Note:

1FINANCE
MEMO
To: Board of Directors
From:
Date: January 13, 2019
Subject: Technical aspects of consolidation of EBOS Group Limited
Introduction
EBOS Group is the leading as well as most expanded Australasian vendor, retailer and
supplier of, medical, pharmaceutical products as well as healthcare. It is also an important
dealer and supplier of predictable customer goods including animal care marques.
Acquisition on Goodwill
After acquisition of Alchemy Holdings Pty Ltd. The acquisition balance sheet was
decided on provisional basis as at 30th June 2017. The goodwill on acquisition resulted to
$127.0 million. CGU`s is included for allocating the goodwill for Alchemy acquisition. As
the size of acquisition is considered as the interest area of the investors. If there is arrival of
goodwill at the time of acquiring the subsidiary company it is recognised as asset on the date
of acquiring. Goodwill is dignified as the surplus of the totality of the consideration
transmitted, the sum of any non-controlling interest during acquirement including the fair
value that has been held by the acquirer’s previously. If there is any equity interest of acquire
above the fair value of the detectable net assets identified. The goodwill is recorded in the
balance sheet under intangible asset head. The adjustments related to it are disclosed in notes
of accounts. According to the standards of AASB of 139 and 9. (Detzen, Wersborg, and
Zülch 2015).