Corporate Accounting and Reporting

Running head: CORPORATE ACCOUNTING AND REPORTING
Corporate Accounting and Reporting
Name of the Student:
Name of the University:
Author’s Note:

1CORPORATE ACCOUNTING AND REPORTING
Table of Contents
Computation of Goodwill:.........................................................................................................2
Consolidated balance sheet as on 1 July 2017:..........................................................................3
Worksheet Entry:.......................................................................................................................4
Assumptions:..............................................................................................................................4
Bibliography:..............................................................................................................................5

2CORPORATE ACCOUNTING AND REPORTING
Computation of Goodwill:
Pre-acquisition Equity
Carryin
g
amount
Fair
Value
Fair Value
adjustmen
t
Calculation
s
Net Fair
Value
Share Capital $90,000
Retained Earning $36,000
General Reserve $12,000
(+) Plant and
Equipment $35,000
$43,00
0 $8,000 8000*0.7= $5,600
(+)Inventories $42,000
$46,00
0 $4,000 4000*0.7= $2,800
(+)Research and
Development 12000*0.7= $8,400
(-)Contingent Liability 3000*0.7= $2,100
FVINA $152,700
Goodwill = Investment in shares of Finn Ltd – Fair value of net identifiable assets.
= 153800 – 152700 = $1,100