Two pages of one real acquisition: the goodwill arithmetic, the eliminations underneath it, and the non-controlling interest rolled forward.
What is in it
Two pages of one worked acquisition, on real numbers. Page one: consideration, the non-controlling interest at fair value, the fair value of net assets and the goodwill that falls out of them; the same deal under the proportionate-share election and what that changes; the intragroup trade underneath it; and why the fair value uplift has to be re-posted in full every year. Page two: the non-controlling interest rolled forward from opening to closing, the eleven elimination entries that produce it, and the four proofs a finished consolidation has to satisfy.
- Goodwill and the non-controlling interest, worked · PDF, two pages
Where to send it
Goodwill is fixed once, at the acquisition date, and every year after that inherits it. The part that gets missed is everything downstream: the fair value uplift has to be re-posted in full each year, its deferred tax unwinds beside it, and the non-controlling interest takes a share of profit as the group sees it rather than as the subsidiary reports it. This is one acquisition carried through both pages, so the closing figures can be read back to the opening ones.
What IFRS Consolidation Toolkit adds to it
A consolidation workbook for a parent and up to eight subsidiaries, with the tie-out checks live in the file, a foreign currency subsidiary whose translation reserve is derived and agreed rather than plugged, the IAS 1 to IFRS 18 conversion workbook, a disclosure checklist, and the whole two year worked example with every schedule shown, including deferred tax on the fair value uplift and a goodwill impairment worked all the way through to the non-controlling interest.