The Statements of Financial Position for company P and company C are shown below:

At the time of the acquisition,the net asset value of C was £100,000.This was made up entirely of £100,000 share capital.If company P owns 100% of Company C,then the consolidated Statement of Financial Position will show a Total Assets figure of:
A) £830. This is made up of 100% of the assets of P and C and the investment of P in C
B) £630. This is 100% of the assets of P and C excluding the investment of P in C
C) £730. This is made up of 100% of the assets of P and C and the goodwill on the investment of P in C
D) £585. This is made up of 100% of the assets and liabilities of P and C

Question

The Statements of Financial Position for company P and company C are shown below:

At the time of the acquisition,the net asset value of C was £100,000.This was made up entirely of £100,000 share capital.If company P owns 100% of Company C,then the consolidated Statement of Financial Position will show a Total Assets figure of:
A) £830. This is made up of 100% of the assets of P and C and the investment of P in C 
B) £630. This is 100% of the assets of P and C excluding the investment of P in C 
C) £730. This is made up of 100% of the assets of P and C and the goodwill on the investment of P in C 
D) £585. This is made up of 100% of the assets and liabilities of P and C

Quizplus · Accepted Answer

The SoFP will show 100% of the assets and liabilities of P and of S, as P is a controlling interest. It will ALSO show the value of the goodwill.
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The Statements of Financial Position for Company P and Company