Brise SA acquires 100% of Cirrus SA on 1 March for 3,200,000. At the reporting date of 30 June, provisional identifiable net assets are 2,000,000. In October, before the end of the measurement period, information about facts existing at 1 March reveals an unrecognised liability: identifiable net assets are reduced to 1,840,000. Case convention: there is no non-controlling interest or previously held interest. Calculate the retrospective adjustment to goodwill.
- Consideration transferred
- 3,200,000
- Provisional identifiable net assets
- 2,000,000
- Revised identifiable net assets
- 1,840,000