- 5 Marks
Question
Calculate the goodwill on the acquisition of the shares in Wiamoase as should be shown on the consolidated statement of financial position of the Sekyedumase Group on 31 March 2025, in accordance with IFRS. You should identify separately the amount of the fair value adjustment to the land.
Answer
Calculation of goodwill on acquisition of Wiamoase under IFRS
| Goodwill | GH¢’million |
|---|---|
| Fair value of Parent’s investment: | |
| Cash | 120.00 |
| Deferred consideration (30 million × 0.826) | 24.78 |
| Total consideration transferred | 144.78 |
| Fair Value of NCI at acquisition | 76.00 |
| Less: Fair value of net assets at acquisition | (179.66) |
| Goodwill at acquisition | 41.12 |
| Less: Impairment loss | (6.00) |
| Goodwill at reporting date | 35.12 |
- Tags: Business Combinations, Fair Value, Goodwill, IFRS 3, Non-Controlling Interest
- Level: Level 2
- Topic: FINANCIAL REPORTING
- Series: JULY 2025
- Uploader: Samuel Duah