Zénith SA acquires 80% of Kora SA for consideration transferred of 4,900,000. At the acquisition date, Kora's identifiable assets have a fair value of 6,400,000 and its liabilities assumed 2,100,000; a deferred tax liability of 180,000 and a recognised contingent liability of 70,000 are to be added. Case convention: Zénith measures the 20% non-controlling interest at its fair value of 600,000. Calculate goodwill.
- Fair value of identifiable assets
- 6,400,000
- Fair value of liabilities assumed
- 2,100,000
- Deferred tax liability
- 180,000
- Contingent liability recognised
- 70,000
- Consideration transferred
- 4,900,000
- Fair value of the non-controlling interest
- 600,000